Just days after IDC issued its report on outsourcing in the European market that names IBM as the leader by a longshot, IBM has signed a first-of-a-kind on-demand services agreement with Electrolux, the world`s largest producer of powered appliances.
This innovative, seven-year deal will see IBM manage Electrolux`s entire European desktop and local area nNetwork environment. IBM will take on responsibility for Electrolux`s PCs, providing users with Lotus Notes, support, administration and hepdesk service and charge Electrolux on a cost per user basis.
IBM will also introduce a standardised infrastructure to enable Electrolux to improve synergies across the group. By accessing information technology on demand from IBM, Electrolux will switch from fixed information technology costs to variable IT costs.
Adopting the e-business on demand model will allow the company to better align itself with changing market conditions and to focus more on growing its core business. This represents an important step in a value-based relationship that spans decades. IBM and Electrolux are also involved in collaborative work around business processes to help Electrolux to accelerate their product development. With 18 brands to its Name, including Flymo and Zanussi, the group is constantly looking at better ways to manage its product lifecycle. Electrolux recognises the value of tapping into the breadth of IBM`s capabilities, from consulting through to its research and development skills. And now the group is now embracing on-demand to enable it to be more flexible yet resilient and responsive.
According to some analysts, this deal is evidence of IBM`s on-demand strategy being put into practice. Moving from a `just-in-case` model to a `just-in-time` model that allows Electrolux to get what it needs when it needs it. Not only is the desktop support being moved to this new model, but the local area network solution will also be based on a variable pricing model.
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IBM Global Services is the world`s largest information technology services and consulting provider, generating over $36 billion in 2002. Approximately 180 000 professionals serve customers in over 160 countries, providing the entire spectrum of customers` e-business needs -- from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services.
IBM Global Services delivers integrated, flexible and resilient processes -- across companies and through business partners -- that enable customers to maximise the opportunities of an on-demand business environment. For more information, visit www.ibm.com/services.
Electrolux
The Electrolux Group is the world`s largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, cookers, vacuum cleaners, chainsaws, lawn mowers and garden tractors. Every year, customers in more than 150 countries buy more than 55 million Electrolux Group products for both consumer and professional use sold under famous brands such as AEG, Electrolux, Zanussi, Frigidaire, Eureka and Husqvarna. In 2002, Electrolux had sales of SEK 133.2 billion and 82 000 employees.