JP Morgan Cancels $5 Billion IBM Deal

JP Morgan backed out of what was IBM's largest outsourcing deal in the financial services industry.

When JP Morgan and IBM forged their outsourcing contract in 2002, IBM was to take over the global computing operations in numerous key areas including retail banking, trading and securities processing. The original goal was allowing JP Morgan to cut its own spending on technology.

J.P. Morgan, the No. 2 U.S. bank, said following its recent merger with Bank One, it could better manage its own technology and infrastructure. The bank plans to rehire the 4,000 IT employees who had been transferred to IBM.

Read the entire Reuters release here.