13 October 2004 IBM is set to bolster its Rational software unit with the acquisition of project portfolio management (PPM) maker Systemcorp.

The deal, which is expected to close within 30 days, will add IT project management capabilities to IBM’s Rational analytic business software. The financial terms of the deal with the privately held company were not disclosed.

Systemcorp, founded in 1993, had previously partnered with IBM. IBM Global Services sold Systemcorp products, while also allowing the company to use its WebSphere portal software to present information to project managers.

Ari Kugler, Systemcorp’s CEO commented: “Joining IBM will enable us to more tightly integrate our technology with IBM’s tools and services organisations, offering customers a complete IT portfolio management solution that is unmatched in the market.”

Analyst firm Forrester Research recently reported that IT units that invest in project-management applications reap heavy rewards: business goals are more likely to be met, resources allocated more efficiently and costs better managed.

“Tightly linking the IT organization with the goals of the overall business enables companies to take a business-driven approach to IT project and portfolio management and software development,” said Mike Devlin, General Manager, IBM.