India Broadband Forum

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IBM (NYSE: IBM) today announced a $217 million, 7.5-year Business Transformation Outsourcing (BTO) agreement with American Airlines (NYSE: AMR) to transform and manage many of the airline’s human resource (HR) functions. American Airlines will further enhance its human resources services to its employee population based in the United States and Canada by leveraging IBM’s suite of automated services and technologies complemented by best practices for human resources administration, integrated with Mercer’s administrative and consulting expertise.

American Airlines is the world’s largest airline. With more than 88,000 AMR employees across the United States and Canada, providing flexible and available HR services is critical to ensuring that the employees have access to information and services wherever they may be. As part of the agreement, IBM will provide American Airlines support for standardized human resources processes including training, recruitment and staffing and HR-related information technology and call center support. IBM will team with Mercer to provide American Airlines and its employees with a comprehensive package of HR services. Mercer will deliver health and benefit, pension plan, and compensation administration, in addition to health and benefit and employee communication consulting services.

These next generation human resources services provided by IBM, in partnership with Mercer, will result in a more integrated and improved employee experience, reduced costs, improved operational efficiency, and access to innovative solutions. “Through our agreement with IBM, we’re acquiring state-of-the-art tools and processes that will enhance our employees’ access to and use of HR services,” said Jeff Brundage, Senior Vice President-Human Resources, American Airlines. “Moving the transactional work to IBM allows us to focus our energies and resources on our strategic business imperatives.”