IBM, Partnering With Mercer, to Deliver HR Transformation and Services
to World's Largest Airline
ARMONK, NY -- March 02, 2007 -- IBM (NYSE: IBM
<http://studio.financialcontent.com/Engine?Account=iwire&PageName=QUOTE&
Ticker=IBM> ) today announced a $217 million, 7.5-year Business
Transformation Outsourcing (BTO) agreement with American Airlines (NYSE:
AMR
<http://studio.financialcontent.com/Engine?Account=iwire&PageName=QUOTE&
Ticker=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."
"American Airlines is a great example of an industry leader using
Business Transformation Outsourcing as a tool to drive strategic value,
allowing them to become more flexible and adaptive while focusing on
their core business," said Monty Baker, Vice President of Human
Resources Business Transformation Outsourcing, IBM. "IBM brings
extensive experience in standardizing HR processes across the enterprise
supported by world-class delivery capabilities and ongoing process and
technology investments. Working with Mercer, IBM will bring innovation
and new efficiencies to American Airlines and its employees."
About IBM
For more information, visit www.ibm.com.
About Mercer HR Services
Mercer HR Services, a wholly owned subsidiary of Mercer Human Resource
Consulting, offers one of the most flexible and comprehensive HR
services platforms available and provides complete outsourcing solutions
for retirement plan administration and program management, health and
benefits administration, absence management, and Total Benefits
Outsourcing (TBO) for HR services.
About Mercer Human Resource Consulting
Mercer Human Resource Consulting is a global leader for HR and related
financial advice and services, with more than 15,000 employees serving
clients in more than 180 cities and 40 countries and territories
worldwide. The company is a wholly owned subsidiary of Marsh & McLennan
Companies, Inc., which lists its stock on the New York, Chicago, and
London stock exchanges (NYSE: MMC
<http://studio.financialcontent.com/Engine?Account=iwire&PageName=QUOTE&
Ticker=MMC> ) (CMER: MMC) (LSE: MMC). For more information, visit
mercerHR.com.
MEDIA CONTACT:
Charles Salmans
Global Public Relations
Mercer Human Resource Consulting
212-345-4512
Charles.salmans[at]mercer.com
Adam Emery
IBM Media Relations
917-472-3283
adame[at]us.ibm.com
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