Kobe Steel and IBM Japan in $579 million deal

Kobe Steel will outsource its information systems development, maintenance and operations to IBM for 10 years in a deal worth approximately 70 billion yen.

Kobe Steel will outsource its information systems development, maintenance and operations to IBM for 10 years in a deal worth approximately 70 billion yen (US$579 million) and to provide expanded IT services to other companies.

Under a Memorandum of Understanding signed by the two companies, IBM Japan will also take a 51% financial stake in Kobelco Systems Corporation, an IT subsidiary of Kobe Steel.

‘Kobe Steel will outsource its IT systems business, currently provided by Kobelco Systems, to IBM Japan. IBM Japan and Kobelco Systems will work together to deliver IT services to Kobe Steel,’ said Mr. Takahide Ohara, General Manager of Corporate Planning at Kobe Steel.

‘One of the aims of this collaboration is to increase Kobelco Systems’ revenue from third-party companies, following on from proven success in this area,’ said Mr. Ohara. ‘The partnership enables Kobelco Systems to make good use of IBM Japan’s marketing reach and advanced technology in expanding its external business. IBM Japan is planning to utilise Kobelco Systems’ e-business skills as a part of its services offerings to other companies,’ he added.

Kobelco Systems offers e-business applications for customer relation management (CRM), enterprise resource planning (ERP) and supply chain management (SCM).

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