IBM Gets $3-Billion Contract

IBM Corp. won a $3-billion, 10-year contract to provide computer support to Cable & Wireless Communications, its biggest service contract outside the U.S. Under the contract, IBM will maintain the computer network and billing system for CWC, Britain’s largest cable company. The computer giant will add to CWC’s 1,000 information technology staff and create 400 new jobs. IBM is building its business of providing software, consulting and maintenance services to companies while trying to sell its worldwide computer network, which has narrower profit margins. Revenue in IBM’s Global Services unit accounts for about a quarter of Big Blue’s $78.5 billion in annual sales. The value of the CWC contract will be spread over the life of the agreement, contributing about $300 million a year to revenue. IBM shares rose $2.56 to close at $120.50 on the New York Stock Exchange.