IBM selected as tech partner for Sumitomo Metal in US$660 million, 10-year contract
Singapore, 17 April 2000 - IBM announced that Sumitomo Metal Industries, Ltd. (SMI), in a move to drastically reform its information systems and develop new e-business solutions, has selected IBM Japan to manage its IT systems in a ten-year deal worth over US$660 million.
In outsourcing its information systems to IBM, SMI has decided to undertake major reform of its information
systems to allow it to better respond to the demand for information internally and externally; to achieve more
efficient systems operations and to utilize electronic networks to help it manage its business.
IBM, through its services arm IBM Global Services, the world's largest information technology services company,
will be responsible for the development, maintenance and operation of SMI's existing steel production, sales, distribution and administrative systems with the aim of helping the company improve productivity, integrate hardware and streamline and standardize software.
Mr. Michio Kubota, General Manager, Information Systems department, SMI Sumitomo Metals, said that SMI wants to develop an information system that will meet its future needs in the networked era.
"Working with IBM will enable us to build an integrated information network for systems that are currently
dispersed throughout the company. In addition we will utilize IBM's leadership in IT to link users, trading companies,
steel service centers and affiliated companies via an electronic network," he said.
Mr. Takao Endoh, General Manager, Sector Services, Industrial and Distribution Sector, IBM Global Services Japan, said that organizations around the world are finding that e-business solutions that put common processes such as payment systems and Supply Chain Management onto the Internet are powerful tools for transforming business.
"IBM will work with SMI to improve current IT systems and help implement e-business solutions that will allow SMI to manage its business even better than it currently does," Mr Endoh said.
The contract commenced this month and IBM and SMI formed a joint venture company to manage the contract.
About Sumitomo Metal Industries