O2 in ‘exclusive’ outsourcing talks with IBM

15 Oct 2007

IBM has emerged as the winning bidder for the outsourcing of mobile operator O2 Ireland’s IT division, a move that may see 230 IT workers move from O2 to IBM.

In May it emerged that O2 had decided to issue a tender for the outsourcing of its IT and network management divisions, a decision that will have an impact on a total of 450 workers with the company.

Siliconrepublic.com has learned that the IT element of the deal may be awarded to IBM and the two companies have entered into a due diligence process on the deal.

It is understood that the network management element of O2’s outsourcing strategy may be awarded to Ericsson, and that the two companies are currently in negotiations.

O2 Ireland’s IT division employs 230 workers and it is understood that when the contracts are agreed these workers will transfer to IBM.

In a statement this morning O2 said: “Following O2’s announcement earlier this year that the company intended to explore the possibility of outsourcing its technology function, O2 Ireland can now confirm that the company has entered exclusive negotiations with IBM to supply and manage O2 Ireland’s IT services.

“The exact nature of how the service will be provided will be finalised over the coming months through due diligence. O2 is delighted to have selected IBM, a company which has a very strong presence and track record in Ireland,” the company said.

By John Kennedy