IBM, Allianz In New $330 Million Outsourcing Agreement

International Business Machines Corp. (IBM) Tuesday said it signed a $330 million, seven-and-a-half year outsourcing agreement with Allianz SE (AZ) for information-technology support.

The companies said IBM will provide Allianz with a single service management framework that includes data center services, storage management, back-up and recovery, system software support and desk-side services including email.

Allianz's Fireman's Fund Insurance Co. had previously outsourced some functions to IBM. The new IBM agreement now also includes Allianz Life Insurance Co. Of North America.

The agreement reflects about $200 million of new business for IBM. Allianz expects its two businesses to save about 20% of their current annual IT infrastructure expenses with the pact.