Scandinavian banking group Nordea is to consolidate its existing IT operations spanning four Nordic countries into a common technology platform as part of an ongoing business integration and cost-cutting programme.
The aim of the integration programme is to simplify, unify, speed up and re-engineer internal processes and to consolidate and share group infrastructure across borders and business areas, says the bank.
The group IT function - which currently comprises 1050 employees and had a cost base in 2002 of EUR330 million - will be consolidated and incorporated with contractual obligations such as delivery and quality to the customers in the business areas and group functions.
The integration programme will result in reduced number of technological platforms run from a single location, and the implementation of standardised networks and desktops across the group.
The shake-up is expected to result in EUR70 million savings annually within four years. The largest cost reductions emerge from centralised and standardised hardware and software and reduced costs for licences. Nordea says 250 jobs will be lost as a result of the measures.