Gap Outsources IT Operations to IBM
Armonk, N.Y., In a deal worth an estimated $1.1 billion, Gap Inc. has hired International Business Machines Corp. (IBM) to operate parts of its information technology structure. Gap said in a Securities and Exchange Commission filing that the deal, reached Friday, is non-exclusive. IBM will streamline Gap’s information-technology operations and provide help-desk and disaster-recovery services. IBM is expected to take on about 400 Gap employees.
The retailer said the agreement has an initial term of 10 years.
American Eagle Looks East
New York City, American Eagle Outfitters Inc. will enter Japan in 2007. The company sees the potential for 100 stores in the Japanese market. It plans to use the country as a springboard for expansion in other parts of Asia.