IBM and Singapore Airlines (SIA) signed a seven-year outsourcing contract worth 300 million Singapore dollars (181 million US dollars) on 26 October 2004, with the arrangement taking effect on 18 November.
Under the agreement, IBM will assume responsibility for SIA's data centers, end-user computing services, and IT help desk operations. SIA had disclosed plans to outsource its entire IT division in September, though it had not identified the vendor at that time.
About 130 SIA employees in the affected IT roles face redundancy, though the joint statement noted they have been offered positions at IBM with comparable pay and responsibilities. The airline projects annual savings of roughly 15 million Singapore dollars from the move.
SIA's senior vice president for planning, Mak Swee Wah, said the outsourcing would allow the carrier to concentrate on its primary business while controlling costs and maintaining customer service standards. The airline is also cutting 70 finance-division jobs through outsourcing before year-end.
The restructuring reflects broader cost pressures across Singapore's aviation sector, where carriers are responding to intensifying competition from regional budget airlines.
Historical summary. TurkishPress restated this AFP wire report, first published in October 2004, in its own words.