Del Monte Philippines, Inc. and IBM have entered into a $ 3.1-million five-year outsourced data center solutions contract.

Del Monte tapped IBM’s technology expertise to boost Information Technology (IT) efficiency while bringing down operational costs through smart IT and Data Center outsourcing solutions.

The shift will allow Del Monte to focus on a more strategic IT roadmap aimed at supporting a five-year revenue projection while addressing the growing costs of managing and supporting IT operations.

The move to IBM addresses business demands of greater availability and higher service performance as Del Monte is now able to swing their Capital Expenditure (CAPEX) to purely Operational Expenditure (OPEX) with their SAP migration infrastructure particularly on the Infrastructure.

The first of the two contracts signed in 2009 is a total IT infrastructure services outsourcing contract. Under the Service Level Agreement, IBM provides management for the food giant's Data Center, Servers/Storage, Network, DMS, Helpdesk, IT Asset & Vendor Management.

The second contract covers management of an outsourced SAP Infrastructure (servers, storage, Data Center facility & Disaster Recovery site) for Del Monte's migration to SAP ECC 6.0 while maintaining the asset ownership of the said Infrastructure.

Cesar Canlas, Chief Information Officer, Del Monte Philippines said IBM liberated funding for direct savings and increased the company’s IT efficiency in its day-to-day operations. The company’s productivity and business growth are expected to be enhanced.

"Our clients recognize that in today's business environment, technology is the differentiator which can provide a valuable competitive edge,” said James Velasquez, Country General Manager, IBM Philippines. “IBM has the global IT expertise and know-how to help ensure that Del Monte reaches its five-year revenue objectives."