Novartis and BT in IT outsourcing deal
By Cloud Direct • 29 Oct 2007
Novartis has struck a $500 million (£240 million) IT outsourcing deal with British Telecom (BT), according to new reports.
The Switzerland-based healthcare company has outsourced its global IT infrastructure to BT in a seven-year contract.
A spokesperson for the Swiss company said that less than 200 Novartis jobs would be affected by the deal and that many more positions would be created by the contract.
"Part of the savings can be invested back in the business," the spokesperson added.
Novartis' decision to outsource its IT operations to BT is part of a number of productivity initiatives the company is currently undertaking, in what has been described in some reports as a "cost-cutting spree".
The Swiss company is a world leader in the research, development, manufacturing and marketing of products to improve health and well-being.
In 2006, Novartis made $37 billion (£17.94 billion), spent $5.4 billion (£2.61 billion) on research and development and had 98,788 employees.
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