Under the deal, IBM will operate ING US Financial Services' technology systems, consolidate mainframes and midrange computer operations and manage help desk, voice and data networks.

The agreement with IBM will enable ING to increase or decrease computing capacity as market demand changes and pay only for the capacity that it uses.

Paul Donovan, chief information officer, ING US Financial Services, says: "IBM's on demand computing model will propel ING US Financial Services' IT infrastructure to new levels of performance, efficiency and power."

IBM says it will also work with ING to introduce emerging technologies, including wireless access.

Separately, India-based ING Vysya Bank has signed a five year IT outsourcing contract, worth $20 million, with Bangalore-based iGate Global Solutions.

Under the contract, iGate will manage the bank's data centre operations, systems and network management and provide on-going support.

Bart Hellemans, CEO and managing director, ING Vysya, says: "Through their global experience and domain expertise iGate will ensure that our technology systems are a key differentiator for us."