UPDATE 1-IBM gets $873 mln contract from State of Georgia

(Recasts; adds details, share movement)

Nov 20 (Reuters) - International Business Machines Corp (IBM.N) said the State of Georgia awarded it an eight-year contract valued at $873 million for information technology outsourcing services.

The contract includes two additional one-year optional extensions, the biggest technology services company said in a statement.

As subcontractors to IBM, Dell Inc (DELL.O) will update and manage the state's client systems. Print services will be provided by Xerox (XRX.N).

IBM will provide the State of Georgia with a range of data center services including disaster recovery and IBM Internet Security Systems will supply security services, the company said.

Shares of IBM closed down 6 percent at $71.74 Thursday on New York Stock Exchange. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Jarshad Kakkrakandy)