German finance giant Allianz in talks to outsource IT to IBM

The deal could be worth hundreds of millions of dollars to IBM as the German finance firm seeks to transform its global IT infrastructure.

Image: Allianz

IBM and Allianz have entered discussions that could see the New York-based technology giant win an outsourced IT infrastructure contract, thought to be worth hundreds of millions of euros.

Allianz, a Germany-based financial firm, which offers insurance among other things, said in a statement on Tuesday it will start "exclusive contract negotiations," that could seal the deal between the two companies by the end of 2013.

The plan is for Allianz to outsource most of its IT infrastructure to Big Blue by consolidating its global datacenters down from 140 to six. The company wants to keep operating by integrating its internal networks and datacenters into what it dubs the Allianz Private Cloud by the end of 2017.

IBM will pick up most of the slack in the move. The financial firm said there were several benefits of the private cloud by using "standardized and harmonized technology."

Financial terms of the deal were not disclosed.