J.P. Morgan Signs Contract With IBM
New York bank J.P. Morgan Chase & Co. said it signed a seven-year contract for information technology services with IBM Corp. worth more than $5 billion as it moves to cut costs.
The deal, the largest services contract IBM has received from the financial services sector, is a coup for the computer maker, which is focused on selling services.
As a result of the agreement, J.P. Morgan said, it will transfer about 4,000 employees and contractors to IBM in the first half of next year. Desktop support and other services will remain in-house, the bank said.
Shares of IBM were down $1.11 to $76.25 and J.P. Morgan was up 19 cents to $23.99, both on the New York Stock Exchange.