The producer of the Bombardier airplanes passes to IT services of IBM for $700 million

On May 16, 2017 the Bombardier engineering company announced the conclusion of the long-term IT contract with the American corporation IBM. Thanks to this global cooperation the Canadian producer of airplanes and trains expects to cut down expenses significantly.

The agreement extending to 47 countries of presence of Bombardier assumes global integration of IT services of IBM in railway and space business of Bombardier. The contract is signed for six years during which Bombardier will pay $700 million for services of IBM.

Bombardier C Series airplane

Bombardier say that the company, having signed the agreement with IBM, will receive regular economy and will create a strong basis for increase in business performance within the global IT organization.

This initiative directed to IT transformation will help us to carry out better integration worldwide that will allow to create the IT organization, best in the class. We will transform our service model to focus on core competencies and to use the best practices of the strategic partner within our infrastructure and transactions — Sean Terriah, the Chief information officer on space and corporate questions of the company said.

The Bloomberg news agency notes that the CEO of Bombardier Alain Bellemare aims to cut down expenses within the plan of the financial improvement made after the company started two years the project of passenger narrow-body two-engined reactive airplanes of the average range C Series earlier and spent for it more than $2 billion. In 2016 Bombardier announced plans to reduce number of staff more than by 14 thousand jobs. At the same time the income of heads grew that caused a criticism wave.^[1]

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