ACI Worldwide, Inc. Signs IT Outsourcing Agreement With IBM
NEW YORK, NY - Mar 2008: ACI Worldwide, Inc. (Nasdaq: ACIW), a leading international provider of software for electronic payment systems, today announced an agreement to outsource its internal information technology (IT) services to IBM (NYSE: IBM). As part of the agreement, IBM will provide ACI with global infrastructure services including management of ACI’s mainframe, storage and related server platforms, data network monitoring and management, and end-user support services. ACI will retain responsibility for its security policy management and on-demand business operations.
The seven-year agreement is estimated to deliver operating cost savings for ACI of $25 million to $30 million over the course of the contract, providing the company with advanced technology and enhanced service capabilities.
David Morem, senior vice president of global business operations at ACI, said, “This agreement allows ACI to focus on its core competence in developing, delivering and supporting payment solutions for our customers. By outsourcing infrastructure management to IBM, we can leverage their worldwide resources to consolidate our data centers, upgrade hardware and software, and standardize on proven tools and processes to improve our operational performance in our on-demand business and IT infrastructure. IBM will bring enhanced disaster recovery capabilities and more stringent security standards to our IT systems, reducing our risk exposure, and provide an IT foundation that can grow very cost-efficiently as ACI’s global business expands.”
Philip Hausler, vice president for the banking industry at IBM Global Technology Services, said, “This agreement reflects the broad range of services IBM can offer to help customers maximize their efficiency and leverage modern technology. We look forward to serving ACI and adding value to their worldwide business.”
The outsourcing agreement will include incremental cash cost of approximately $4 million of severance expenses, transition costs and professional fees in 2008 and is expected to be cash-positive for ACI primarily due to a decrease in capital expenditures. In addition, ACI expects to incur up to $5.5 million of transition-related charges in 2008 for which cash payment will be deferred and paid out in periodic installments in years 2009 through 2012.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.