Under the proposed agreement, IBM would provide IT services for all of NTL’s operations in the UK and Ireland until 2008. The current 10 year contract, signed in September 1998 between IBM and CWC Communications Services Ltd, now known as NTL Communications Services, will be the foundation of the new strategic alliance.
NTL currently employs 600 associates and contractors in IT, and everyone who transfers to IBM will be offered employment. Detailed consultations with those affected are beginning today. NTL intends to retain control of its IT activities that are fundamental to its competitive advantage and key to the development of its intellectual property.
Peter Black, Chief Technology Officer, NTL, added: We anticipate that this alliance will deliver significant cash savings of approximately £300m over the life of the contract and improve service levels. We expect to see these savings begin in the latter half of 2001, after the contract has been signed and increase during the life of the contract. In addition, we expect a step change in the speed at which we will be able to deliver new products and services to the market place. All our stake-holders will benefit. It really is a win-win situation.
