IBM wins New York transit authority outsourcing work

IBM Corp. has won a five-year, $65 million contract from the New York Metropolitan Transit Authority to manage outsourced operations and maintenance of the authority's data center.

Under the contract, IBM Global Services will operate and manage the center, which controls the authority's computer processing operations as well as its fare collection system.

The company also will manage applications that support employees, equipment and financial and administrative functions. The operations will be performed at a local data center outside Manhattan, the company said.

The New York Metropolitan Transit Authority comprises the New York City Transit Authority, MTA Bridges and Tunnels, Long Island Rail Road, Metro North Railroad and Long Island Bus system.

Through its various agencies, the authority serves a population of 14.6 million in a 5,000-square-mile area that fans out from New York City into Long Island, southeastern New York state and Connecticut.

IBM Global Services, which has 180,000 employees, is part of IBM of Armonk, N.Y. The parent company has more than 255,000 employees and annual sales of $89.1 billion.