Nissan Selects IBM as Information Technology Provider in North America
Somers, New York (October 28, 1999) – Nissan North America, Inc. (NNA) and IBM today announced a $1 billion, nine and a half year contract under which IBM will provide extensive information technology management and delivery services for Nissan’s operations in North America. In addition, Nissan and IBM will explore the most effective and efficient methods of providing IT service in other parts of the world where Nissan operates.
IBM Global Services, a division of IBM and the largest and most diverse IT services provider in the world, will use its extensive experience in IT services, including strategic outsourcing and information technology management, to benefit Nissan.
This contract is expected to give Nissan a significant amount of cost savings over its term. In addition to the cost efficiencies, IBM’s capabilities are anticipated to streamline Nissan’s IT operations and provide access to leading-edge technology to help support Nissan’s strategy of tapping new sources of revenue and moving closer to its customer-base.
Under the agreement, IBM will help Nissan jointly develop and implement a worldwide IT management system that will allow Nissan to improve its operations and better face the challenges of an increasingly global marketplace. These efforts are part of Nissan’s Revival Plan announced by Nissan’s Chief Operating Officer, Carlos Ghosn., on October 18 in Tokyo.
“The automotive industry is becoming increasingly global and reliant on new IT technology to stay competitive,” said Nobuo Araki, president and CEO, Nissan North America, Inc. (NNA). “Working with a technology leader like IBM will give Nissan an IT provider who can supply the infrastructure and services to support our business strategies. This arrangement will allow us to concentrate on our core business of vehicle design, production and sales while significantly reducing our IT costs,” Mr. Araki said.
“IBM is committed to helping Nissan thrive in the growing IT marketplace,” said Dan Colby, general manager, Industrial, IBM Global Services. “We will provide Nissan with our proven expertise in IT services to help Nissan re-engineer its organization and meet its business objectives.”
Source: IBM