Canadian Manufacturing

Sandvik AB taps IBM for $292-million IT services contract

The deal includes the operation of all server platforms and services

SANDVIKEN, Sweden—Sandvik AB has hired IBM to manage its internal IT infrastructure services in a five-year deal worth about CAN$292 million (2 billion SEK).

The move is aimed at strengthening the internal business solutions for Sandvik IT in its bid to integrate its many global parts with an eye to better cost efficiency and quality of IT services.

The deal includes the operation of all server platforms including hardware, application platform software and facilities where servers are placed. IBM will also Sandvick’s manage office PC’s, messaging, collaboration, standard applications and second line user support.

IBM will offer employment to Sandvik’s employees currently working in these areas.

The Sandvik Group is a global industrial group focusing on tools for metal cutting, equipment and tools for the mining and construction industries, stainless materials, special alloys, metallic and ceramic resistance materials as well as process systems. In 2011 the company had about 50,000 employees in 130 countries with annual sales of more than $13.7 billion.

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