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Hess Corporation and IBM Sign Innovation-Led $73 Million Outsourcing Services Agreement


ARMONK, NY .-IBM (NYSE: IBM) today announced a $73 million five and one-half-year outsourcing agreement to provide Hess Corporation (NYSE: HES) with global information technology (IT) infrastructure services.

Hess Corporation, with headquarters in New York, is a global integrated energy company engaged in the exploration, production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products. By selecting IBM, Hess will leverage IBM’s global delivery network, deep understanding of the petroleum industry and extensive research capabilities.

Under the contract, IBM will provide global IT infrastructure services, including: round-the-clock monitoring, management and early problem detection and resolution for Hess’ servers and global network; service desk services; centralized remote desk-side management services; asset tracking services; and end user support services. IBM will update Hess Corporation’s current server environment with the latest IBM System x and System p servers, which will enable Hess to reduce costs for the overall IT infrastructure, improve service delivery, implement best-in-class processes, and achieve early resolution of IT infrastructure issues.

“We are confident that this agreement will help us better serve our businesses,” said Pete Walton, Hess’ Vice President and Chief Information Officer, “particularly as it is consistent with our larger effort to create a competitive advantage through technology. We look forward to leveraging IBM’s recognized best-in-class tools, processes, and expertise.”

“This kind of services agreement is a key way in which IBM is helping energy clients innovate and make the right changes to compete more efficiently and profitably,” said Scott Hopkins, IBM Global Technology Services general manager, Industrial Sector. “When IBM takes on a range of global IT infrastructure services for a client such as Hess, it enables them to increase their focus on more strategic parts of their business, such as oilfield operations. It also provides an opportunity to examine the new generation of technologies which can help them visualize, virtualize and integrate business processes more efficiently. We look forward to working with Hess, and to exploring ways in which IBM Research can add value to their organization.”

The agreement was signed in September of 2007.


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