IBM Denmark lands substantial order from Arla Foods  

2006.06.19
IBM Denmark has gained a DKK 2 bn order from Arla Foods for development and management of all IT operations of Arla Foods in Denmark and Sweden for the next seven years

IBM Denmark has gained a DKK 2 bn (USD 340 m) order from Arla Foods for development and management of all IT operations of Arla Foods in Denmark and Sweden for the next seven years. Arla Foods is Europe's second largest dairy company and is headquartered in Aarhus, Jutland. The order includes consulting services, development, maintenance and facility management services. Arla Foods' current 130 IT staff will be transferred to IBM.

Karsten Fogh Ho-Lanng, senior analyst at IDC says the order will help cement IBM's dominant position in IT services on the Nordic market. IBM has about 26% of the Danish IT service market which according to IDC grew last year by 8% to DKK 27 bn (USD 4.6 bn).

Lars Mikkelgaard-Jensen, managing director of IBM Denmark comments: "To us there are interesting features in the order because in contrast to traditional outsourcing, this is not only about operation of IT systems. We are also taking over IT tasks regarding operation, maintenance and future software development.

Arla Foods was formed in the spring of 2000 following a merger between Denmark's MD Foods and Sweden's Arla. The company is a co-operative owned by approx. 10,600 milk producers in Denmark and Sweden. Arla's 2004/05 turnover was DKK 46 bn (USD 7.7 bn). The news was reported by financial daily newspaper Børsen.

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