Dutch banking group Rabobank is outsourcing its software development, maintenance and testing operations under a seven year deal signed with local ICT services firm Ordina.
Under the agreement 150 Rabobank employees and 350 third party staff from the bank's software development operations will transfer to Ordina.
Commenting on the move, Piet van Schijndel, a member of the management board at Rabobank says: "Our decision to outsource part of the system development process of Rabobank Group ICT to Dutch-based Ordina is driven by continuity of employment and services. Over the coming years, many of our current systems will be replaced."
Ordina says it will pay the bank EUR21 million for the business, which will be paid by issuing new shares which are subject to a lock-up period.
The Dutch vendor will build new systems to replace Rabobanks existing applications and will be responsible for implementing packaged software. Rabobank will retain responsibility for governance of system development processes.
New Jersey-based vendor Cognizant will act as sub-contractor to Ordina and provide offshore services.