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Outsource magazine: thought-leadership and outsourcing strategy | September 20, 2017

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Texas ‘to end IBM deal’

Outsource Magazine

The Texan Department of Information Resources is almost certain to terminate its $863m data centre outsourcing deal with IBM after Big Blue’s proposed solutions to the ongoing impasse over alleged service and equipment deficiencies (see previous story) were described by the department’s executive director, Karen Robinson, as “little more than a reiteration of inconsistent and incomplete ideas that IBM has previously expressed”.

While the state has not formally broken off the engagement, reports in the local press this week stated that the work involved in the deal will be put out to tender once again: the state is said to be actively searching for companies able to take over the deal, and it is understood that the work in question is likely to be broken up into smaller, more manageable sections. The Dallas Morning News did however point out that “Department spokesman Thomas Johnson, citing state law that drapes confidentiality around plans to call for competitive bids, declined to say when or how the work would be rebid.”

IBM, though, appears understandably reluctant to give up on the deal, with company spokesperson Jeff Tieszen stating that his organisation hopes “to move the data centre services project forward for the benefit of the state” and to “continue a constructive dialogue”.

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