IBM has won another major procurement outsourcing deal, this time with electronics manufacturer Solectron Corp.
The services giant will manage more than $1.2bn of Solectron’s annual indirect spending, including office equipment, utilities, and telecommunications services, across 17 countries.
The companies withheld the financial details of the contract, but the total value of the ‘long term’ deal is likely to be in the hundreds of millions of dollars, as in the past the value of major procurement contracts has averaged 8% of managed spend, according to data from advisory firm Everest.
The project is expected to go live in autumn this year in North American with a global roll out by early spring 2007.
The contract win confirms IBM as the market leader in procurement outsourcing. In the last year it has won contracts with perfume firm Coty Inc, food giant Unilever and energy company NiSource.