IBM Taking Over Lufthansa’s Information Technology For $1.25 Billion… 1,400 Employees Will Transfer To IBM
Germany’s Lufthansa has granted IBM a $1.25 billion (1 billion euros) contract in order to take over the airline’s information technology infrastructure services division and staff.
About 1,400 Lufthansa Systems employees will transfer to IBM as part of the agreement.
This is a calculated move by Lufthansa as the company looks to cut costs a midst growing competition from other European airlines.
IBM plans to expedite Lufthansa’s IT processes through cloud computing, saving the German company an estimated $70 million euros a year throughout the seven-year deal.