Virgin Mobile USA, a leading national provider of prepaid and hybrid wireless plans to North America, has signed off on a new IT services agreement with IBM.

Under the terms of the agreement IBM will manage Virgin Mobile’s IT operations and new applications development. This will entail the migration of existing it infrastructure and applications to IBM systems and the ongoing development of differentiated wireless applications and service offerings in partnership with Virgin. IBM will also provide data centre outsourcing and application management services

Virgin Mobile USA expects that, as a result of its new relationship with IBM, the company will achieve IT-related operational cost savings over the next five years, while increasing the company's competitive advantage in new product and service delivery. The expected benefits of the company's new relationship with IBM are key components of Virgin Mobile USA's focused expansion and value creation strategy.

Jonathan Marchbank, Chief Operations Officer for Virgin Mobile USA, said: "We have built our success as a customer-centric innovator, and always seek to enhance our product and service offerings. These steps will continue to raise the standards in the prepaid market overall and allow us to stay current with, and ahead of, trends and evolutions in the overall wireless industry. With over 5 million customers, the scale we've achieved now puts us in a position to take advantage of IBM's proven best practices, scope and unparalleled experience in running and building IT infrastructure."

The company expects the transition of its existing IT infrastructure and application suite to IBM to be completed by December 31, 2008.