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SEATTLE -- Microsoft will increase supplies of its Xbox 360 games console to retailers by two to three times, beginning this week.

The company, which due to component shortages has struggled with production of the popular device, has lowered its target to 4.5 million to 5.5 million units to be shipped by June.

The component situation has been resolved, the company said.

Microsoft outsources production of the consoles to Wistron, Flextronics and Celestica.

SAN JOSE -- Verigy Pte. Ltd., the ATE branch of Agilent which is on track to be spun off,  will outsource its manufacturing to Flextronics beginning later this year.

The plan was detailed in a S-1 filing required as part of Verigy's proposed initial public offering.
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NEW YORK -- IBM has signed a long-term contract with Solectron Corp. to manage billions of dollars in indirect procurement services across 17 countries. Other terms of the contract were not disclosed.

Under the contract, IBM will manage more than $1.2 billion per year of indirect spend for temporary contract services, office equipment, utilities and telecommunications. IBM will integrate its procurement software with Solectron's internal systems and controls.

IBM will enable Web-based requisitioning as well as efficient procurement and supplier payment.

"The savings we expect from this contract with IBM will contribute to both operational and process innovation and simplification, which improves services to our customers and suppliers," says Perry Mulligan, chief procurement officer, Solectron, in a prepared statement.

IBM will supply commodity experts, a global contact center and an accounts payable processing center supporting Solectron suppliers and employees around the globe. Solectron will also have access to a full range of transformation and maintenance services from IBM.

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