Canadian Imperial Bank of Commerce is to outsource human resource operations and technology services to EDS Canada in a C$227 million agreement beginning in June 2001.
CIBC is the first major financial institution in Canada - and among the first in North America - to outsource the management of its human resource operations and technology services. CIBC is also the launch customer for the EDS HR service. Up to 200 bank staff will be transferred to EDS as part of the deal.
Joyce Phillips, CIBC executive vice president, human resources, says: "This move is aligned with CIBC's overall strategy to focus on its core businesses while using the expertise of leading providers to support our administrative needs."
Under the agreement, EDS will supply CIBC with "core" human resources services including: a call centre for employee and manager support; human resources systems support; as well as payroll, benefits, and pension administration. EDS has also been contracted to provide programme and project management support for the HR division and administer health and occupational services and financial reconciliation and management.