DEARBORN, Mich. -- Visteon Corp. has struck a 10-year, $2 billion deal to use IBM as its primary information technology provider.
Visteon, announcing the deal Wednesday morning, said that under the global partnership IBM will deliver a wide range of IT services, which will allow Visteon to focus on its core business operations.
"Our alliance partnership with IBM will enhance the quality of our IT services and improve our speed to market," said Mike Johnston, Visteon's president and chief operating officer, in a written statement. "This agreement gives us flexibility by making our IT expenditures variable, which allows us to adjust services to meet our business demands."
Visteon would not say what it expects to save by outsourcing its IT to IBM.
"It's a better way for us to do things, letting us concentrate on our core businesses," said Visteon spokeswoman Marjorie Sorge. "It's just a much easier way for us to do business. We're really looking at the IT quality. It's going to improve a lot of what we do."
Visteon, which was spun off from Ford Motor Co. in 2000, will discontinue using Ford for any of its IT needs, Sorge said.
"We had some relationship with them," Sorge said. "They provided specific services for us. That goes away."
Visteon would not say how many employees would move over to IBM.
IBM will deliver a wide range of IT services on a global basis including mainframe support services, data centers, customer support centers, application development and maintenance, data network management, desktop support and disaster recovery.
Visteon continues to set direction and manage its IT architecture, strategy, planning and product development applications.
"The automotive industry is becoming increasingly global and reliant on new IT technology to stay competitive," said Lorie Buckingham, Visteon chief information officer, said in a press release. "Working with IBM will give Visteon state-of-the-art technology and support services applied consistently on a global basis. This will allow Visteon to focus on our core business strategies supported by world-class quality and delivery of IT services through the partnership."