Appliance giant Electrolux is tapping Big Blue to tend to its desktop computers, the companies plan to announce Monday.

In a seven-year outsourcing deal that expands an existing relationship between the companies and continues IBM's "on-demand" computing push, IBM said it will manage the desktop environment in Electrolux's European offices. It will provide computer users there with Lotus Notes messaging and collaboration software as well as support, administration and help desk services.

The contract is worth $212 million to $259 million, estimates Stratos Sarissamlis, a Meta Group analyst familiar with the arrangement. The deal is not as big as some of IBM's other information technology contracts. But Sarissamlis said it is significant that Big Blue is offering on-demand pricing for a comprehensive set of desktop computer and local area network (LAN) services, rather than just for pieces of the desktop environment.

He also suggested the deal arose in part from a shift in Electrolux's internal IT department, which moved from focusing on technology to paying more attention to the service it gives to other departments. Electrolux "was in the right mindset to understand the on-demand service provision and pricing," Sarissamlis said.

Sweden-based Electrolux will pay IBM per user as business grows and shrinks, Big Blue said. The contract anticipates a likely range of between 13,000 and 19,000 desktops.

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