Oslo-based Den norske Bank (DnB) has signed a five-year contract specifying the handover of its IT operations to Telenor/EDB Business Partner.
The formal contract signing confirms a letter of intent signed at the beginning of May this year.
Effective this month, EDB Business Partner and Telenor will take over ownership and operating responsibility for the bank's IT operations, including equipment, buildings and around 190 employees in Oslo and Bergen.
DnB estimates it will achieve annual costs savings of Nkr150 million as a result of the deal. The bank insists the agreement will have no impact on it ability to develop and manage its IT services.
DnB has previously outsourced around 50 per cent of its IT operating services to external providers. The wish to have one main provider of operating services has been a key factor in the choice of partners says the bank.
For the past year, DnB has been working on different models for streamlining IT services. Efforts have concentrated on three areas: operating services, systems applications services and the selection of new core systems, which involves a transition from inhouse proprietary technology to standardised systems.
Preparations for the outsourcing of systems applications services and new core systems will continue, says the bank.