IBM Constructs Services Deal with FluorIBM Constructs Services Deal with Fluor

Construction industry company Fluor Corp. says it will pay IBM $351 million over the next seven years for a range of computing services. Under the deal, announced Tuesday, IBM will provide desktop, server, LAN, and help-desk support to Fluor operational sites in the United States and abroad. About 250 Fluor employees will join IBM Global Services as part of the arrangement.

Fluor officials say the deal will help the $8.9 billion company save on IT costs because Fluor will pay only for the computing power it uses. Fluor now spends about $400 million on IT.

The agreement is similar to services contracts that IBM has recently inked with American Express, Deutsche Bank, and J.P. Morgan Chase. Those companies also have agreed to buy computing services from IBM on a so-called "on-demand" basis.

Under a separate agreement, Fluor provides IBM with a range of construction services.