Glaxo outsources legacy IT to ACS in $32m deal

GlaxoSmithKline is to outsource some of its mainframe legacy systems in a $32m five-year deal with ACS.

ACS will be responsible for the company's mainframe services in a move that will see GSK cut the costs of supporting ageing legacy architecture. David Cheetham, spokesman for GSK, told silicon.com: "It is strictly mainframe and afflicts no job loss to the company in either the UK or US side."

The deal is separate to the ongoing 'Project Spring' review of GSK's European IT operations that is looking at a potential £1.5bn ten-year outsourcing arrangement. That review was due to have been completed early this year and it has now dragged on for almost 18 months but the company is now looking to make a decision in the autumn.

Caroline Duell, GSK spokeswoman for Project Spring in Europe, told silicon.com the company still has not made a decision on whether to outsource or keep it in-house.

She said: "It is still a review of whether outsourcing is potentially valuable or not."