The new deal extends and renews a contract signed in 2001, when IBM began to manage Scotiabank's IT operations.

Under the latest agreement IBM will continue to manage the Canadian bank's IT - including data centres, branches and ATMs - and provide help desk support.

The new contract also includes a new global framework to support Scotiabank's worldwide operations.

IBM says terms of the agreement call for the application of advanced technologies - such as server virtualisation -- and new service delivery capabilities.

"Scotiabank understands technology can directly contribute to shareholder value by enhancing reliability for our business processes, improving responsiveness to customer needs and facilitating customer acquisition," says Kimberlee McKenzie, executive vice president, information technology and solutions, Scotiabank. "This new agreement with IBM will reinforce Scotiabank's strengths in operational excellence and systems reliability."