IBM to mind the Gap's computers
IBM to mind the Gap's computers
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IBM today announced that Gap Inc., the world's largest specialty apparel retailer, selected IBM as its provider for IT infrastructure services. The 10-year, approximately $1.1 billion contract will provide Gap Inc. with mainframe, server, network, helpdesk and deskside support services across its North American stores and corporate locations.
"IBM is a global leader in infrastructure services and a long-standing partner of Gap Inc.," said Gap Inc. chief information officer and executive vice president, Michael Tasooji. "Delivering capabilities that drive our retail business, provide competitive advantages and serve our customers are our highest priorities. Transferring our technology infrastructure operations to IBM enables us to deliver and implement these solutions faster."
After investing heavily in its IT systems over the last 5 years, Gap is giving up managing its systems. According to Richard Williams, an analyst at Garban Institutional Equities in New Jersey, "Gap was one of the big innovators, and maybe they are throwing in the towel." Or, quite simply, Gap realizes now that outsourcing more of their IT functions will allow them to concentrate on their core competencies as they have been losing market share to rival retailers.
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