NTL, Ireland's largest cable television operator, said yesterday it would outsource its information technology to IBM in a deal that would save it £372 million (€472 million) by 2008.
The move is part of a consolidation of the 11 acquisitions it has made in Britain and Ireland in the past 18 months, chief technology officer Mr Peter Black said.
IBM will provide IT services for all of NTL's operations in Britain and Ireland, where it owns the former Cablelink, until 2008. The majority of NTL's 600 IT employees will be offered jobs with IBM, Mr Black said, with the remainder staying with the company. NTL cut 1,300 jobs in November.
The deal will involve systems ranging from customer care to billing.
The savings are equal to more than half NTL's third-quarter revenues. NTL shares were up $0.25 at $32.25 (€33.91) on Easdaq.
