Consolidation Move Sealed $5B IBM Deal - Page 2

: IBM and J.P. Morgan">

Art of the Deal: IBM and J.P. Morgan

  • May 1996 J.P. Morgan announces it will outsource management of global IT infrastructure to the Pinnacle Alliance, a group of service providers led by CSC and including AT&T Solutions and what later became Accenture and Verizon
  • December 2000 J.P. Morgan and Chase Manhattan Corp. merge, forming J.P. Morgan Chase & Co., the nations second-largest financial institution, with an estimated IT budget of $4.7 billion; the deal with CSCs Pinnacle Alliance is expanded to include Chase Manhattan
  • Q1 2002 J.P. Morgan Chase issues RFP for new deal, inviting bids from EDS, IGS and CSC; deal is structured in two parts
  • Mid-2002 Bank decides to restructure RFP as single deal and expand it to include distributed systems; new RFP is re-sent only to IBM and EDS
  • November 2002 Bank negotiates exclusively with IGS
  • Dec. 30, 2002 Bank announces $5 billion, seven-year contract with IBM

Source: J.P. Morgan Chase, IGS

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