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By | Drew Cullen 19th January 2006 13:13

IBM minds the Gap with $1.1bn outsourcing gig

Takes on 400 staffers

IBM has won a ten-year outsourcing contract worth up to $1.1bn with clothes retailer Gap Inc.

The company is taking on 400 employees from Gap who will look after Gap’s mainframe, server, network, helpdesk and deskside support services in North America

It is to consolidate its customer’s IT systems and will roll out wireless networking through Gap’s 2,850-plus retail locations in North America.

In an SEC filing this week, Gap said it expect to improve capabilities while reducing costs. It noted that the deal is non-exclusive and that there are provisions for performance benchmark studies and break clauses. ®

IBM statement

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