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Lufthansa is enlisting IBM to help modernise the airline's IT strategy

Lufthansa is enlisting IBM to help modernise the airline’s IT strategy

Deutsche Lufthansa AG announced it has enlisted IBM in a seven-year outsourcing deal worth €1bn that will cover the management of the company’s datacentres and IT services. Lufthansa said the move will help bolster its use of cloud, mobile and analytics tools across the business.

Lufthansa said that over the life of the contract IBM will help it develop new solutions that include business analytics, mobile and cloud computing services, which will enable the airline to offer new services to customers and improve operational efficiency across its business.

Some of its plans include the rollout of an internal cloud-based collaboration service for employees, and a move bolster the mobile capabilities of the airline’s customer-facing applications and websites.

Martina Koederitz, general manager, IBM Germany commented on the deal: “The agreement provides Lufthansa constant access to IBM research and development. This will enable Lufthansa to incorporate the latest technology and innovation into the Lufthansa IT infrastructure including strategic areas such as cloud computing, big data analytics or cognitive computing systems like Watson.”

As part of the outsourcing deal IBM will manage Lufthansa Systems’ entire datacentre operations, help desk and printer services along with individual infrastructure services, and 1,400 Lufthansa Systems employees will transfer to IBM.

“Outsourcing the IT infrastructure to IBM will strengthen the competitiveness of the Lufthansa Group as a whole. The transformation plan will directly improve our cost base,” said Simone Menne, member of the executive board and chief financial officer at Deutsche Lufthansa AG and chairperson of the supervisory board of Lufthansa Systems AG.

“Together with IBM we will have access to the latest IT technologies not only to lower our cost but also to continue digitalizing our business processes in order to increase efficiency and customer focus,” he said.

IBM said operational optimisation will help the airline save up to €70m annually.