HIROSHIMA, Japan—Mazda Motor Corporation and IBM Japan have announced an extension to their strategic outsourcing contract for information technology (IT). Aimed at raising business efficiencies in Mazda’s operations through the enhanced use of information technology, the agreement extends the existing contract for the December 1999 to May 2010 period by five years, and runs through 2015.

The modified strategic outsourcing contract will take effect in April 2008 for seven years through 2015. Its focus is on wide-ranging human resource development initiatives to enhance Mazda’s business and systems know-how in addition to the existing development and operation of information systems. The contract extension will strengthen the strategic partnership between the two companies in areas utilizing IT.

A key element of the new agreement is closer cooperation between Mazda’s information system division and IBM Global Services Japan Chugoku Solutions Company, a wholly owned subsidiary of IBM Japan. This will include increased personnel exchanges for improved use of IT in Mazda’s purchasing, manufacturing, sales and personnel administration operations. With expanded links between the two companies, Mazda’s organizational strength will be enhanced by developing its people and improving their overall business know-how.

In addition, Mazda will actively utilize IBM Japan’s global technology expertise, standard processes and tools, and other offerings for system development to build next-generation information systems. These tools will enable Mazda to respond swiftly and flexibly to management needs in the future with a reduction in medium- to long-term costs. Mazda will continue to conduct information systems strategic planning, systems R&D for engineering and server network operation independently.