by CIO Staff

Gap and IBM Join Forces in Technology Pact

News
Jan 17, 20061 min
Data Center

Gap will pay IBM roughly $1.1 billion over the next decade to assume a number of the clothing retailer’s technology operations, The Boston Globe reports.

Within a Securities and Exchange Commission (SEC) filing, Gap said the deal, reached Friday, is nonexclusive.  IBM will rework Gap’s IT operations while taking on about 400 Gap employees, as well as provide help and disaster-recovery services.

The decision to outsource technology operations was to reduce costs, according to the San Francisco-based retailer who operates Gap as well as other popular retailers like Banana Republic and Old Navy.

IBM was due to report its fourth quarter earnings today, the same day the deal was disclosed.

By Al Sacco