Tuesday, January 7, 2003
IBM is expected to announce a major deal this week to outsource a portion of its server manufacturing, sources familiar with its plans say. The new deal is said worth as much as $3.6 billion over three years.
A year after outsourcing the manufacturing of its NetVista desktop PCs, Big Blue will do the same for its X-Series servers and IntelliStation workstations.
The contract will likely go to San Jose, CA based Sanmina-SCI, which also took over the manufacturing of IBM's NetVista desktop, sources said Tuesday.
The agreement is to help IBM lower its costs to better compete with companies such as Dell Computer in the Intel-based servers market. Sanmina-SCI will handle configuration of some of the servers, which will be manufactured in China. IBM will continue to handle configuration of some servers as well.
IBM plans to keep its ThinkPad notebook line in-house. The company has streamlined its notebook manufacturing process. It is expected to announce that all of its ThinkPad manufacturing has been consolidated in Shenzhen, China.
By: DocMemory
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