IBM to Georgia: Bye, y'all

Georgia's $1.8 billion telecommunications outsourcing project has suffered another major setback as one of the two teams vying for the 10-year contract withdrew its bid less than two months after submitting it.

IBM Corp. of Armonk, N.Y., notified the Georgia Technology Authority that it was canceling its bid, said John Nyland, IBM's vice president of public-sector Americas. The changing nature of the solicitation led IBM to withdraw, Nyland said.

IBM's withdrawal leaves only one team, led by Electronic Data Systems Corp., Plano, Texas, in the running.

The state is now discussing options, such as moving forward with just the EDS team or canceling the project and outsourcing parts of the telecommunications operation separately, said Michael Clark, spokesman for the authority, which is running the competition.


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