IBM (News - Alert) has entered into a five-year strategic agreement with Sandvik, a high-technology engineering group.

The value of the agreement is approximately two billion SEK, more than $250 million USD.

Sandvik aims to become a more fast-paced, global and customer-focused company with greater synergies within IT and other selected areas.

This pact will enable scalability and flexibility in cost, resources and competence for Sandvik.

"We are very satisfied to have entered this agreement with IBM and have high expectations on their ability to meet our demands," says Goran Kordel, CIO of Sandvik, in a statement.

Kordel said that this is an important step towards strengthening the internal business solution for Sandvik IT and also a vital part in Sandvik's ambition to be a globally integrated company.

"We are very delighted to continue to work closely with Sandvik," said Johan Sandell (News - Alert), general manager at IBM in Sweden.

"Our own transformation turned IBM into a higher-performing enterprise providing returns to shareholders and added value to our clients and employees. We are convinced our transformation experience will support Sandvik on a similar journey to deliver value to Sandvik's business," said Sandell.

Officials with IBM said that the services in scope for this agreement are 'data center services' and 'workplace'.

According to company officials, 'Data center services' includes the operation of all server platforms including hardware, application platform software and facilities where servers are placed. 'Workplace' includes all services to manage office PCs as well as messaging, collaboration, standard applications and second-line user support. All tasks within 'workplace' and 'data center services' will be performed by IBM.

Company officials said that as per the terms of this pact, IBM will offer employment to Sandvik's resources currently working in these areas.

"A successful transition of both employees and technology to IBM is designed to not only enhance the security of Sandvik's business operations, but also to provide a unique opportunity for Sandvik's highly skilled employees to continue their professional career, supporting both Sandvik and other IBM clients," said Yvonne Andersson, strategic outsourcing country executive at IBM in Sweden.

To find out more about IBM visit the company at ITEXPO West 2012. To be held Oct. 2-5 at the Austin Convention Center in Austin, TX, ITEXPO (News - Alert) is the world’s premier IP communications event. Visit IBM in booth # 1324. For more information on ITEXPO West 2012 click here.