IBM and JP Morgan Chase have announced a seven-year outsourcing agreement.
The agreement will enable
JPMorgan Chase to transform its technology infrastructure through absolute
costs savings, increased cost variability, access to the best research and
innovation, and improved service levels.
By moving from a traditional
fixed-cost approach to one with increased capacity and cost variability,
JPMorgan Chase will be able to respond more quickly to changing market
JPMorgan Chase will outsource a significant portion of its data processing
technology infrastructure, including data centers, help desks, distributed
computing, data networks and voice networks. The agreement includes the
transfer of approximately 4,000 JPMorgan Chase employees and contractors as
well as selected resources and systems to IBM in the first half of 2003.
Application delivery and development, desktop support and other core
competencies will largely be retained inside JPMorgan Chase.