Gap Outsources IT Operations to IBM

Armonk, N.Y., In a deal worth an estimated $1.1 billion, Gap Inc. has hired International Business Machines Corp. (IBM) to operate parts of its information technology structure. Gap said in a Securities and Exchange Commission filing that the deal, reached Friday, is non-exclusive. IBM will streamline Gap’s information-technology operations and provide help-desk and disaster-recovery services. IBM is expected to take on about 400 Gap employees.

The retailer said the agreement has an initial term of 10 years.