Furthering their existing strong relationship, UTS and IBM have announced the signing of a multi-million dollar three year collaborative partnership.

The arrangement will foster ongoing co-operation and bring benefits to both organisations.

The collaboration will focus on contributing to the development of students and graduates, on research activities, the supply of products and services and other mutually beneficial projects.

UTS Vice-Chancellor Tony Blake acknowledged that the university and its students had already benefited through IBM's generous donation of equipment and research opportunities with IBM internationally.

"Partnerships such as these are essential to our success and for our ability to provide students the capabilities that will be highly sought after in the workplace of the future," said Professor Blake.

"Working together we can provide invaluable opportunities for our students and develop the education programs that will respond to emerging international needs."

IBM Chief Executive Officer Philip Bullock said the UTS and IBM alliance had synergies in the areas of research and innovation, and in training a highly effective future IT workforce.

"Leveraging technology is critical to Australia's economic future and the talent we develop contributes directly to this," Mr Bullock said.

"The private and education sectors must work together to ensure we develop the best people and provide the necessary infrastructure for Australia to become more internationally competitive.

"I am delighted that the University of Technology Sydney is committed to ensuring their investment in skills and education for graduates is the right mix for our rapidly changing environment. We look forward to working with the University to enhance both the students learning experience and preparation for their careers."

UTS postgraduate PhD student Carolyn McGregor is among students who have already benefited from cooperation between UTS and IBM in recent years.

She said part of her PhD studies included a three-month internship with IBM at its Yorktown research facilities in New York where she numbered among 5,000 researchers.

"Being able to do my research alongside world leaders in top facilities was a dream come true," she said.

"The possibilities it has opened up working here and overseas are amazing. While I finish my PhD here I am also completing the research I was doing in Yorktown and I have regular meetings with my supervisor in the United States over the Internet. The opportunities are too good to miss."