IBM, Bristol-Myers Squibb, Contract, HRO

IBM Wins 10-Year Bristol-Myers Squibb Contract

ARMONK, NY - 05 Jun 2008: IBM (NYSE: IBM) today announced a 10-year, $324 million Business Transformation Outsourcing (BTO) agreement with Bristol-Myers Squibb to transform and support many of the company's global human resource (HR) functions.

The contract with IBM will allow Bristol-Myers Squibb to provide flexible and available HR services to ensure that its employees across the globe have access to information and services wherever they may be.

"Dynamic change in the pharmaceutical industry is forcing companies to become more streamlined in their operations," said Philip Guido, IBM general manager, Managed Business Processing Services, Americas. "In order to manage talent within an organization, a company must have an integrated view into its employee population and workforce data. The approach that Bristol-Myers Squibb is taking for its HR function will be integral to helping it better serve its customers and support its strategic transformation to a BioPharma leader."

Under the agreement, IBM will provide compensation, benefits, recruiting, learning, payroll administration, call center support and related IT systems services to Bristol-Myers Squibb. Additionally, IBM will implement a SAP solution and integrate Bristol-Myers Squibb's global workforce data into one portal that can be accessed by employees, managers and HR professionals around the globe. The services will support Bristol-Myers Squibb's operations in the United States, Puerto Rico, United Kingdom, Ireland, France, Germany, Italy, Spain and Belgium, as well as, limited support to 40 of its additional country locations in Asia Pacific, Europe and the Americas. Through the agreement Bristol-Myers Squibb seeks to achieve a more integrated and improved employee experience, reduced costs, improved operational efficiency and access to innovative solutions.

IBM's call centers in Manila and Budapest, as well as its delivery centers in the United States will support Bristol-Myers Squibb's global operations.

The master agreement between IBM and Bristol-Meyers Squibb was executed in May 2008. The anticipated value of this global relationship, once all local agreements have been executed, is $324 million.

About IBM

IBM has an extensive portfolio of HR outsourcing services including HR transformation, analytics, applications and infrastructure, and specialty services.

For more information, visit www.ibm.com/services.