American Airlines has awarded a 7.5-year, $217 million contract to IBM to overhaul its HR functions, according to GlobalSourcingNow.com.
Under the terms of the contract, IBM will work with Mercer HR to standardize the enterprise-wide HR functions of American Airlines and provide a wide range of services. IBM will provide support for various HR processes such as training, recruitment, and staffing. In addition, the company will provide HR-related systems as well as call-center support. Mercer will deliver health and benefits, pension plan, and compensation administration services, as well as employee communication consulting services to American Airlines.
According to GlobalSourcingNow.com, the airline is seeking to achieve improved employee satisfaction, reduced costs, improved operational efficiency, and access to innovative solutions so it can focus on its core business.