Del Monte taps IBM for IT systems

MANILA, Philippines - Del Monte Philippines has tapped IBM’s technology expertise to boost its information technology (IT) efficiency while bringing down operational costs through smart IT and data center outsourcing solutions.

The company said its shift allows it to focus on a more strategic IT roadmap aimed at supporting a five-year revenue projection while addressing the growing costs of managing and supporting IT operations.

The move to IBM likewise addresses business demands of greater availability and higher service performance as Del Monte is now able to swing their capital expenditure to purely operational expenditure with their SAP migration infrastructure particularly on infrastructure.

The five-year contracts worth around $3.1 million were signed last year.

The first is a total IT infrastructure services outsourcing contract. Under the service level agreement, IBM will provide management for the food giant’s data center, servers/storage, network, DMS, helpdesk, IT asset and vendor management.

The second contract covers management of an outsourced SAP infrastructure (servers, storage, data center facility and disaster recovery site) for Del Monte’s migration to SAP ECC 6.0 while maintaining the asset ownership of the infrastructure.

Del Monte chief information officer Cesar Canlas said IBM liberated funding for direct savings and increased the company’s IT efficiency in its day-to-day operations. The company’s productivity and business growth are expected to be enhanced.

“Our clients recognize that in today’s business environment, technology is the differentiator which can provide a valuable competitive edge. IBM has the global IT expertise and know-how to help ensure that Del Monte reaches its five-year revenue objectives,” IBM Philippines country general manager James Velasquez said.

Del Monte enjoys leading market shares for canned pineapple juice and juice drinks, canned pineapple and tropical mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup, and also markets products under its second-tier brand, Today’s. It innovates, produces, markets, and distributes its products worldwide.