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Is CircuitCity’s Outsourcing Deal The Start Of A Retail Trend?

Written by Evan Schuman
April 1st, 2007

CircuitCity’s IBM outsourcing deal–worth about $775 million to Big Blue over seven years–is an interesting move where CC decided to use IT as a specialized strategic center and fully ditch the more day-to-day operational issues.

The companies said the move will actually transfer fewer than half of CC’s current IT team (only 50 of 130 such positions) will move to IBM. Could this be the start of a trend, where IT gets back to being a strategic decision group and not the helpdesk and installer of every device needed. With about 650 stores in 158 U.S. markets, the rationale to consider such a move is clear.

Posted in IT Strategy/Industry
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