KLM places its Office Automation with IBM

KLM has signed an office automation contract with IBM for the next four years. Having signed on the dotted line, KLM expects to realize savings of approximately € 8 million for the duration of the contract. The contract itself is worth approximately € 40 million.

KLM originally adopted a policy of standardizing and sourcing out its office automation in 2001. In line with this policy, as of 1 August 2003 the airline has sourced out half of its office automation to IBM. Besides making the ICT for the desktop environment within KLM more efficient and more structured, it will also reduce the costs of the ICT operation and at the same time there should be fewer problems. The outsourcing is consistent with the airline's strategy of focusing entirely on its core business. The decision to source the work out to IBM was prompted by an earlier successful collaboration between the two companies. IBM will be managing approximately six to seven thousand workstations.

KLM has had intensive contact with IBM for quite some time in outsourcing the management of its IT. In 1999 the airline appointed IBM to manage the workstation IT of the Cargo Division for a period of four years. Having seen that the collaboration was successful, a few months ago KLM asked IBM to augment the agreement to include the provision of a 24-7 support service for other departments, such as Engineering & Maintenance, both inside and outside the Netherlands. Outside the Netherlands the automation management will be sourced out in phases once several small-scale implementations have been evaluated.

"KLM has taken a huge step towards the implementation of standard work stations, infrastructure and service worldwide. The quality of the service will be improved and there will also be economies of scale," said Cees Koster, CIO and Director of Information Services.

"We are proud to be able to provide KLM with an international support service, enabling the airline to concentrate entirely on its core business," said Peter Mous, Director of IBM Global Services.