IBM is on course to knock EDS off the number one spot as the UK's leading software services supplier, vnunet.com can exclusively reveal.
Big Blue today announced a deal with NTL which has a potential value in excess of $2bn over its term, said an IBM spokesperson.
Anthony Miller, an analyst at Ovum Holway, said: "This will surely put pressure on EDS. IBM is really on a roll. They have just won a $6bn deal with Fiat which is the biggest outsourcing contract for the management of back-office computer systems in Europe."
NTL will hand over management of its UK and Ireland computer operations with projected savings in excess of $450m in the life of the 11-year contract. Nearly 500 staff will transfer from NTL to IBM.
Miller said that NTL, which doubled in size after buying Cable & Wireless, will retain control of IT activities "fundamental to its own competitive advantage".
"This is a super win for IBM," he added. "They have a history with Cable & Wireless Communications. In 1998 they won a £1.8bn outsourcing deal with them, so it was a reasonable place for NTL to go."
NTL is hoping to cut costs and reduce its debt by about $13bn through the deal. "Companies outsource for all sorts of reasons but the primary reason is to cut the cost of computing," said Miller.
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