IBM, Nextel Pair Up For Mobile Development

IBM Global Services Nextel Communications

The strategic alliance, announced on Friday, calls for the two companies to work together to enhance Reston, Va.-based Nextel's wireless system, as well as develop applications for Nextel handsets and other mobile devices.

In a separate agreement, Nextel is also outsourcing its customer relationship management to IBM Global Services. The eight-year deal, worth $1.2 billion to IBM Global Services, calls for the integrator to take over management of the customer-care center that employs about 4,500 people, an IBM Global Services spokeswoman said. IBM will partner with CRM solution provider TeleTech, Denver, to help manage the centers.

"Nextel's key priorities are to drive greater operating efficiencies while continuing to provide our customers with superior customer care," said Jim Mooney, COO of Nextel, in a statement.

Nextel said the two deals will net the company about $1.2 billion in savings and revenue over the period of the agreement.