March 02, 2007 10:22 ET

IBM and American Airlines Sign Human Resources Services Agreement

IBM, Partnering With Mercer, to Deliver HR Transformation and Services to World's Largest Airline

ARMONK, NY -- (MARKET WIRE) -- March 2, 2007 --IBM (NYSE: IBM) today announced a $217 million, 7.5-year Business Transformation Outsourcing (BTO) agreement with American Airlines (NYSE: 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

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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) (CMER: MMC) (LSE: MMC). For more information, visit

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