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    AstraZeneca spends $1.4bn on IBM outsourcing deal

The two companies have cemented an existing relationship by extending their outsourcing arrangement for a further seven years.

By Maggie Holland, 17 Jul 2007 at 12:37

AstraZeneca is renewing its outsourcing ties with IBM in a seven-year, global deal worth $1.4 billion (£684 million), in a move it hopes will help enable it to focus on scientific innovation as well as reducing technology overheads.

Under the agreement, IBM will provide IT infrastructure managed services to the pharmaceutical's operations spanning 60 countries around the world, including functions not covered by the previous partnership.

While IBM will deliver server and storage hosting, PC management, network and communications service provision such as email, AstraZeneca will still retain overall control of its IT strategy and applications.

"This innovative agreement with IBM will enable AstraZeneca to deliver greater value to the business by providing consistent infrastructure services globally, enabling a faster and more efficient rollout of new technology, with improved levels of service," said Richard Williams, AstraZeneca's chief information officer (CIO).

"Leveraging IBM's global delivery capabilities and economies of scale will allow AstraZeneca to focus its efforts on adding value to its scientific, commercial and supply operations, thereby helping the company to deliver more medicines that make a meaningful difference to patients. In allowing IBM greater autonomy on methods of delivery, the agreement will result in cost efficiencies when compared with running in-house systems."

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