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Cendant and IBM Sign $1.4 Billion Pact, Forming One of Travel Industry's Widest-Ranging Outsourcing Engagements.


Business, High Tech and Travel Editors

NEW YORK New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 and SOMERS, N.Y.--(BUSINESS WIRE)--Dec. 3, 2001

Covers 40 Business Units Including Galileo International,

Avis Rental Car, Ramada ra·ma·da  
n. Southwestern U.S.
1.
a. An open or semienclosed shelter roofed with brush or branches, designed especially to provide shade.

b. An open porch or breezeway.

2.
 Hotels, Days Inn,

and Resort Condominiums International Resort Condominiums International (RCI) is a subsidiary of the firm Wyndham Worldwide (previously Cendant).

Founded in 1974, RCI has grown to become one of the larger brokers of timeshare trades.
 

Cendant Corporation and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries)  today announced they have formed a ten-year, $1.4 billion IT services relationship that will provide Cendant with the data operations and processing foundation it requires to provide the highest quality services to its customers and support its future endeavors.

With Cendant's strong presence in the travel industry, the agreement covers a full spectrum of services related to airline, car rental, hotel, and leisure companies, including Galileo International, which Cendant acquired earlier this year. Galileo's electronic global distribution system (GDS GDS Global Distribution System
GDS Google Desktop Search (Google)
GDS Goodie Domain Service (Vienna University of Technology, Austria)
GDS Guards
) is among the largest systems of its kind, connecting approximately 44,000 travel agency locations to 500 airlines, 40 car rental companies, 47,000 hotel properties, 370 tour operators, and all major cruise lines
See also List of ferry operators
This is a list of cruise lines, companies that operate cruise ships.
Name Headquarters
A'rosa Europe
NCL America America
AIDA Cruises Europe
American Cruise Lines America
 throughout the world.

Additional Cendant travel units utilizing services related to the agreement include Avis Rental Cars and Ramada, Days Inn, Super 8, and Howard Johnson Hotel chains, as well as vacation travel companies such as Resort Condominiums International (RCI RCI Royal Caribbean International
RCI Radio Canada International
RCI Rehabilitation Council of India
RCI Residential Communities Initiative
RCI Roof Consultants Institute
RCI Remote Control Interface
RCI Residential, Commercial, Industrial
) and Fairfield Properties. The deal also includes Cendant's Coldwell Banker, Coldwell Banker Commercial, ERA, Cendant Mortgage, Century 21, and Cendant Mobility units.

IBM Global Services IBM Global Services is the world's largest business and technology services provider. It is the fastest growing part of IBM, with over 190,000 professionals serving customers in more than 160 countries.  will manage IT data operations for Cendant's 40-plus business units -- including Galileo's GDS -- from Cendant's data center in Denver. IBM will run Cendant's 1,400-plus computer servers and host many of the Web sites and interactive services operated by the corporation's brands. Among these are Avis Rental Car, RCI, and many others. IBM will also assume responsibility for IT data operations of third-party companies that are currently outsourcing these functions to Cendant. In sum, the IT infrastructure IBM will manage represents approximately 13,000 MIPS (Million Instructions Per Second) The execution speed of a computer. For example, .5 MIPS is 500,000 instructions per second; 100 MIPS is a hundred million instructions per second.  of computer processing power.

Cendant has also selected IBM to provide both help desk and desktop support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services  to thousands of its employees. The help desk services -- which will be provided to Cendant's Avis, Wizcom, and real estate businesses -- will be delivered from an IBM Global Services facility in Toronto. IBM will provide the desktop support services on-site to thousands of employees at Cendant's corporate offices and several remote locations.

About 500 Cendant employees will join IBM Global Services as a result of the agreement.

"Given IBM's strong global travel industry expertise, the company is uniquely equipped to help us establish a world-class data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a  and technology infrastructure that will be second to none and improve our ability to deliver the best value to our customers," said Tom Christopoul, senior executive vice president and chief administrative officer A chief administrative officer (CAO) is responsible for administrative management of private, public or governmental corporations. The CAO is one of the highest ranking members of an organization, managing daily operations and usually reporting directly to the chief executive , Cendant Corporation. "This partnership sets the stage for continued strategic cooperation with IBM in all of Cendant's businesses."

"This relationship represents a great opportunity for both companies," said Sean Ryan Sean Ryan or Seán Ryan may refer to:
  • Seán Ryan (politician) (born 1943), an Irish Labour Party politician
  • Seán Ryan (Irish fiddler) (died 1985), an Irish folk music fiddler
, general manager, distribution sector, IBM Global Services -- Americas. "By selecting IBM to manage its IT operations, Cendant can focus on what it does best -- providing its customers with great service in its key industry segments. For IBM, this cements a long-standing relationship with a leader in the travel industry. And coupled with our recent contracts with Air Canada and Japan Airlines, this agreement demonstrates our continuing commitment to delivering sustainable business value to the industry."

Cendant's relevant IT infrastructure includes mainframe computers and a broad mix of Unix and Intel computer servers. The corporation's mainframe operations run primarily on IBM S/390 servers, while IBM RS/6000 servers are also an integral part of its infrastructure. Cendant relies on IBM's transaction processing software to handle booking and ticketing transactions for all the reservations made through Galileo's systems.

About Cendant

Cendant Corporation is primarily a provider of travel and residential real estate services. With approximately 60,000 employees, New York City-based Cendant provides these services to businesses and consumers in over 100 countries.

IBM Global Services

IBM Global Services is the world's largest information technology services provider, with approximately 150,000 professionals serving customers in 160 countries and annual revenue of more than $33 billion (2000). IBM Global Services integrates IBM's broad range of capabilities -- services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. For more information, visit: www.ibm.com/services For more information on IBM's products, services and integrated solutions for the global travel and transportation industries, visit www. ibm.com/industries/travel.
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Dec 5, 2001
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