IBM grabs 10-year CVS outsourcing deal

By Michael Cooney, NetworkWorld.com, 07/21/06

IBM has won a 10-year contract to handle drugstore chain CVS’ human-resources department. Financial terms of the deal were not disclosed, but it is thought to be worth several hundred million dollars. IBM will take over payroll processing, benefit administration, employee intranet portals and other functions for CVS, whose workforce has grown by 55,000 people to 170,000 through acquisitions in the past couple years.

Published reports said CVS would lose some 140 positions at its headquarters in Woonsocket, R.I. CVS said it expects most of its affected employees to find other positions in the company.
Big Blue said the CVS contract is one of its biggest such outsourcing contracts in recent years and its largest in the retail industry.

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