EDS has been selected to manage the technology integration resulting from Australia's largest-ever merger - between the Commonwealth Bank of Australia and Colonial Limited. The deal follows from a full-scale IT outsourcing contract signed by the Commonwealth Bank and EDS in September 1997.
The original agreement, which EDS claims is the largest of is kind in the banking industry, was valued at about US$3.0 billion over 10 years. That arrangement has been credited with reducing the bank's annual IT expenditures by about 20 percent.
Commonwealth Bank says the new contract, including the Colonial IT expenditure, will add an additional US$700 million to its technology expenditure over the next seven years.
"A key factor in the success of our merger will be the integration of both organisation's systems," says Russell Scrimshaw, head of technology, operations and property for the Commonwealth Bank. "Our technology partnership with EDS allows us to maintain traditional and e-services for customers while moving quickly to integrate technology systems and deliver cost efficiencies."
Existing agreements between Colonial and third-party IT providers will remain ouside the EDS deal