IBM to make multimillion investment in its Danish operational centre  

2005.06.21
The world's largest IT company IBM plans to invest a substantial multimillion sum to turn its Danish division into IBM largest operational centre in Europe

IBM plans to invest a substantial multimillion sum to turn its Danish division into a European hub for customers who choose to outsource their IT operations to IBM. Specifically, IBM will link three large operational centres together using giant optical fibres. Currently only two centres are linked. The expansion will make the Danish operational centre into IBM's largest in Europe.

Sven Kolstrup, head of IBM Denmark says: "The expansion is part of the strategy we made in connection with the acquisition of Mærsk Data and DMdata last year. It is not directly something customers are currently demanding, but we think that the expansion can help improve our positioning to competitors".

According to analysis firm IDC, IBM has 32% of the total Danish market for IT outsourcing, which in 2004 amounted to DKK 10 bn (USD 1.7 bn). Figures from IDC show that outsourcing is the most rapidly growing and most profitable market for IT service companies. The news is reported by financial daily newspaper Børsen.

In 2004, IBM paid between DKK 3.5 bn (USD 630 mn) and DKK 5 bn (USD 900 mn) for the total acquisition of Mærsk Data and DMdata, which ensured IBM revenues of IT services in Denmark worth around DKK 6 bn (USD 1.1 bn). IBM Denmark doubled its staff to more than 7,000 people when it acquired the two Danish companies.

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