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Toshiba Considers IBM Partnership For IT Services





Computer hardware manufacturer Toshiba Corp is considering asking IBM Corp to invest in its IT services division in a bid to increase its number of major contracts.


Tokyo-based Toshiba does not break out the amount of revenue it makes from its IT services business, which it calls e-solutions, but chairman Taizo Nishimuro said he may ask IBM for some investment to help it keep up with the pace set by the largest Japanese IT services providers NTT Data Corp and Fujitsu Corp. The Japanese IT services market is expected to grow at a CAGR of 7.4% to reach $90.4bn in 2005, according to Gartner Inc.


IBM and Toshiba already have a joint venture called T&I Solution Co, which sells computers, software and services to financial services companies. IBM has already had significant success in the Japanese IT services market, winning recent major outsourcing deals with Kobe Steel ($579m), Japan Airlines Co ($644m) and a lucrative 10-year outsourcing and cooperation agreement with NTT Corp that could generate as much as $13.8bn.


Toshiba has a stake in a joint venture company with Accenture Inc and Oracle Corp to provide ERP consulting and systems integration services to Japanese user companies, that was launched in July 2001.

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