IBM has announced that on August 19, 2008 it entered into a five-year information technology (IT) infrastructure services agreement, in excess of $300 million, with Health Net, Inc. As part of the agreement, IBM will manage Health Net's entire IT infrastructure for substantial cost savings and increased datacenter reliability.
"This is an important step in making Health Net more competitive and a key component of our operations strategy to increase our capabilities while reducing administrative costs and improving efficiency," said James E. Woys, Health Net's chief operating officer. "By partnering with IBM, Health Net will receive benefits including reduction of IT costs and operational risk while gaining access to IBM's global resources and technologies."
"We are confident that our extensive history in IT services and industry experience with healthcare payers will directly benefit Health Net's business and customers," said Chris Nicoletti, IBM vice president, health care and life sciences industry. IBM will provide full IT infrastructure management services including: datacenter services, IT security management, help desk and desk side support. AT&T;, an IBM partner, will provide network, voice and data management services.