POUGHKEEPSIE, NY -- Jabil is taking over certain operations inside IBM's plant here and will also take on an undisclosed number of IBM employees.

According to reports, Jabil will assume a greater share of board assembly and test operations, although most manufacturing will remain under IBM.

“We have expanded our relationship with contract electronics manufacturer Jabil to include portions of the assembly operations performed on customer-configured high-end systems, and the procurement operations and assembly of large panel and mechanical sub-assemblies for IBM,” said Jay Cadmus, an IBM spokesman.

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