IBM will work with Diageo to drive standardization and simplification towards a secure and flexible service, creating an infrastructure for e-business as a foundation for future global business growth. The company will also provide Diageo with a single operating environment, a single help-desk facility, a transformed global network, and a consolidated data center and server environment.

The agreement is based on a variable price structure and is expected to provide substantial cost savings to Diageo.

Robin Dargue, CIO, Diageo said: " This agreement will help underpin Diageo's drive for consistent and sustainable profit growth by providing a simpler, more efficient and flexible IS infrastructure."

Joseph Benaroya, IBM's General Manager of Strategic Outsourcing, Europe, Middle East and Africa, said: "Through the work we are doing with our customers in the Consumer Packaged Goods industry we have gained deep insight into their needs and we are constantly driving innovation to help companies like Diageo accelerate growth and increase margins; we are creating a uniform, standardized IT platform which will enable Diageo to transform their business. The end result is increased business capability through leading edge technology initiatives."