AT&T Tech Support 360
April 15, 2002 12:00 PM PDT
Amtrak, IBM in $229 million IT deal
In an effort to conserve cash, Amtrak has expanded an information technology systems outsourcing contract with IBM Global Services to the tune of $229 million over seven years. Amtrak, which lost $1.1 billion last year and is in danger of losing federal funding that enables it to maintain money-losing routes, expects to save $85 million as a result of the deal.
As part of the agreement, IBM will maintain Amtrak's reservation system, and the two companies will market the system to other transportation companies, creating a new source of revenue for the passenger-rail service that operates in 46 U.S. states. Amtrak's reservation system handles as many as 3,300 transactions per minute via the Web, telephone and ticket counters.
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