BERLIN: IBM Computer Hardware Company has won an outsourcing contract from Lufthansa German airline companies worth 1 billion Euros ($1.25 billion) that will see the U.S. Company take over the airline’s information technology infrastructure services division and staff.
By Lufthansa the move is part of plans to restructure and cut costs as it seeks to compete with fast-growing rivals in both Europe and the Gulf.
IBM said it will make the airline’s IT processes more efficient, such as moving it more toward cloud computing, Under the seven-year deal, saving Lufthansa around 70 million Euros a year.
By antitrust authorities the deal is subject to approval and the Lufthansa supervisory board.
Lufthansa Systems employees around 1400 will transfer to IBM as part of the deal, which was first outlined in October.