Mitsubishi Motors Corp. will outsource the management and maintenance of its information technology systems to IBM Japan Ltd. in 2002, the two firms revealed Thursday.
The move, under which IBM Japan will oversee the automaker's IT systems in terms of production, sales, management and technology, is aimed at reducing MMC's IT-related costs by 10 percent, they said.
Marking the first time for the automaker to outsource any service operations, it is also part of the MMC's restructuring program, which is designed improve efficiency, the firms said.
Information technology is vital in this regard, they added.
Specifically, MMC will transfer around 250 employees at its three IT-related subsidiaries -- MMC IT Solution, MMC System Service and MMC Computer Research -- to an IBM Japan subsidiary, Information Technology Solutions Co.
"Utilizing those employees will allow IBM to retain their expertise with the Mitsubishi Motors IT system, while adding the knowhow in IT solutions and skills," they said.
The alliance will likely start operating in April.
While the arrangement will allow MMC to cut its IT system operations costs, the automaker said it will increase its e-business budget by some 10 billion yen a year and further align its IT operations with those of DaimlerChrysler AG.
The German-U.S. auto giant holds a 37.3 percent stake in MMC.