OVERLAND PARK, Kan.-Sprint PCS recorded a one-time pre-tax charge of $352 million during the fourth quarter of 2003 related to the termination of an in-house developed billing platform that the carrier has reportedly elected to outsource to IBM Corp.
The outsourcing is reportedly part of a larger deal between Sprint Corp. and IBM that could result in the transfer of approximately 5,000 Sprint jobs, or roughly eight percent of its workforce,to IBM. Analysts noted the outsourcing is expected to save Sprint several billion dollars over the next several years.
Nextel Communications Inc. signed a similar outsourcing agreement with IBM in 2002.