Nissan Motor Co. and IBM Japan Ltd. announced Monday that the computer firm will manage Nissan's domestic computer and network operations starting Oct. 1.
Under the agreement, Nissan will outsource its information system operations in Japan to IBM Japan, including regular maintenance and operation activities, as well as part of Nissan's application development, they said.
The outsourcing services will be the largest ever for IBM Japan in the Japanese manufacturing industry, they said.
The 101/2-year contract is expected to allow the Japanese automaker to reduce its annual IS costs by more than 30 percent in Japan, the companies said.
The Nissan group invested some 80 billion yen in IS in the fiscal year, which ended in March, the company said.
It will also enable Nissan to implement the latest technological innovations in the IS, or e-business, field based on IBM's comprehensive information technology capabilities.
"This latest partnership with IBM puts in place the global infrastructure which is key to supporting Nissan's long-term profitable growth," said Carlos Ghosn, Nissan's chief operating officer.
In October 1999, the two companies signed a contract under which they started jointly developing and implementing a worldwide IT management system.
Under the pact, Nissan has outsourced its information system-related operations in North America to IBM Corp. since October 1999.