IBM bags $260m IT deals

IBM has won IT services contracts worth about $260m with Boeing and a Korean cosmetics company, the latest of a series of services deals the tech giant has recently won. Big Blue said it has landed a three-year contract with extension options to manage the aerospace giant's company-wide voice communications network. The deal, estimated by IBM to be worth $160m, covers voice services to Boeing's network of nearly 150,000 users. IBM also announced a 10-year deal with Korean cosmetics company Amore Pacific, under which it will operate and manage Amore Pacific's IT infrastructure. The contract is believed to be worth about $100m.

The contract wins come on top of recent successes by IBM in the services field. In July the company said it had inked a $1.1bn, 10-year IT services contract with ABB, the Swiss power and automation technologies company. Earlier this month, it unveiled a seven-year IT outsourcing contract with beverage company Diageo. Analysts familiar with that deal estimated its value at $400m to $500m. And last week, consumer products firm Procter & Gamble said it is in exclusive negotiations with IBM for a multiyear contract for the management of its employee services. Big Blue last year strengthened its services wing with the purchase of PricewaterhouseCoopers' consulting division. It recently disclosed that the price it paid for the unit has grown from $3.5bn to roughly $3.9bn. The higher price stems partly from a review of assets transferred to IBM in the deal.

IBM competes for IT services contracts against companies such as EDS, Accenture and Hewlett-Packard.

Ed Frauenheim writes for CNET News.com