Bombardier has announced a new six year partnership with IT consulting firm IBM to support the global integration of IT services across Bombardier Transportation and aerospace segments. This is part of their turnaround plan to improve productivity, reduce costs and grow earnings. This $700 million will span over 47 countries and is expected to provide a secure foundation to drive efficiency within their global IT organisation. This agreement comes after Bombardier’s plans last year to cut more than 14,000 jobs and improve information technology operations in the Canadian manufacturer’s rail and aerospace business.
“When we launched our turnaround plan last year we committed to transforming our company; to reduce costs, to leverage our scale and to become more efficient in all our operations, and that is exactly what we are doing.”
The multinational IBM ( @IBM ), manufactures and markets computer hardware and software holding the most patents over 24 consecutive years.
“The IT transformation initiative announced today will help us better integrate globally to create a best-in-class IT organization,” said Sean Terriah, Chief Information Officer, Aerospace and Corporate Office, Bombardier ( @Bombardier ). “We will transform our service delivery model to focus on our core competencies, and leverage the best practices of our strategic partner across our infrastructure and operations.”
In October last year, Bombardier announced their financial downturn which would lead to 7,500 redundancies through to 2018. The impact of these restructuring actions on overall employment will be partially offset by strategic hiring to support new growth programmes and major rail contract wins.
“When we launched our turnaround plan last year we committed to transforming our company; to reduce costs, to leverage our scale and to become more efficient in all our operations, and that is exactly what we are doing,” said Alain Bellemare, President and CEO. “While restructuring is always difficult, the actions announced today are necessary to ensure Bombardier’s long-term competitiveness and position the company to continue to invest in its industry leading portfolio while also deleveraging its balance sheet.”
Martin Jetter, senior vice president of IBM Global Technology Services said IBM expertise is helping clients “transform the business of IT to be more competitive, agile and secure through cloud computing and industry services best practices.”
The agreement between the IBM and the Montreal-based manufacturer of planes, trains and other vehicles is one of the largest cloud partnerships in Canada for IBM.
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