Sony Pictures signs 5-year IT deal with IBM

Mumbai: Sony Pictures Entertainment has signed a $3.8 million contract with IBM for securing IT support for its global financial system.

The 5-year contract is in addition to the $4.3 million deal signed between the two companies in 2006, Sony Pictures said in a release.

IBM Global Business Services will provide application management services for SPE''s SAP global financial applications, leveraging IBM''s India-based global delivery capabilities. The agreement, which includes application, system development and security support responsibilities, will allow SPE''s own IT staff to focus on other high-priority new project and improvement initiatives.

Originally implemented by IBM in collaboration with SPE, the new, single financial system replaced several systems that were installed in the territories in which SPE operates. The system provides more than 2,300 users real-time access to SPE financial information globally. IBM will provide operations and support services, both on site at SPE''s Culver City headquarters and remotely from the IBM support centers in India.

"IBM offers us a low-cost and high quality support model for our global SAP skills that we require. We have brought in global reinforcements to augment our staff, substantially reduced our support costs, and redeployed our IT and finance staff on high-value activities," Sony Pictures CFO David Hendler said.

According to IDC, IBM is world''s leading application management service company. IBM''s application management services help clients align business objectives with IT investment and optimize applications to help companies drive revenue, focus on core competencies and lower costs.

Sony Pictures Entertainment (SPE) is a subsidiary of Sony Corporation of America (SCA), an arm of Tokyo-based Sony Corporation.