Barclays to bring IT back inhouse as Accenture outsourcing deal expires
11 January 2010 | 23997 views | 0
Barclays has decided not to renew a six-year, £400 million IT outsourcing contract with Accenture when it expires in June, taking the work back in-house.
Signed in June 2004, the deal covered application development and management of Barclays UK commercial and retail banking systems. Around 900 of Barclays' UK employees involved in system development, support and maintenance transferred to the vendor.
The bank expects around 230 staff to transfer back when the contract expires.
At the time Barclays said the deal would help it to improve resource flexibility and lower the costs associated with developing and maintaining its software applications.
However, following a review, the agreement will not be renewed when it expires on 30 June and the work will be undertaken in-house.
In a statement, the bank says: "Barclays continually assesses its operating model to ensure that it has the most efficient model to support the requirements of the businesses. This change arises from one such standard review, combined with the expiry of the current outsourcing agreement with Accenture on 30 June 2010. Barclays will continue to engage with Accenture to achieve its strategy."
Accenture says: "We evaluated the service delivery model against business objectives and mutually agreed to end the contract as scheduled on 30 June 2010 and transition the application outsourcing services back to Barclays."
The vendor continues: "Accenture and Barclays have worked together for six years to successfully improve the agility, efficiency and capability of the bank's retail and commercial IT. Barclays remains a valued client as we continue to provide consulting and solutions services to them."