The staffing arrangement results in about $28m each year for Keane, which should fall sharply over the next few quarters, the company said. Keane will attempt to relocate its IBM business and existing IBM staff to other companies or to IBM itself.
Keane said IBM’s recent procurement activity is not in line with Keane’s business strategy. The company plans to elaborate further on the decision in its Q2 results conference call on July 20.
Keane’s total IBM-related revenue last year was about $40m.
