This is what I call serious outsourcing. I wonder how the Arla employees feel about becoming IBM employees? These kinds of deals can make a lot of sense though as each party can focus on what they do best.

Arla Foods and IBM have signed a 7 year agreement for the development and management of all Arla Foods’ IT operations in Sweden and Denmark. Effective from July 1 and valued at DKK 2 billion, the agreement means that 130 Arla staff will transfer to IBM.

IBM will provide a flexible solution expected to bring significant cost savings enabling Arla Foods to grow and strengthen its international leadership in the dairy industry. “As we strive to continue to focus on our core business, dairy operations, we also want a strong IT partner who can play a major strategic role for our company”, says IT Director Jesper Erichsen, Arla Foods.

Arla Foods mission statement is: “Our mission is to provide modern consumers with milk-based products that create inspiration, confidence and well-being.”