UFJ Bank signs Y250 billion outsourcing deal with Hitachi
25 July 2002 | 3395 views | 0
UFJ Bank has signed a Y250 billion agreement with Hitachi to outsource its IT systems development and operations over a ten year period.
Under the agreement, Hitachi will take an equity interest in UFJ Bank's wholly-owned subsidiary Sanwa System Development Co. This company will then be renamed and positioned as the fulcrum of Hitachi's outsourcing business.
Hitachi Capital Corporation will also purchase UFJ's software assets for approximately Y50 billion, which Hitachi will then lease for use in its outsourcing business and for facilitating business to other banks.
The deal will enable the bank to pare its IT costs, while keeping tabs on the latest technological developments. UFJ Bank and Hitachi plan to jointly develop a mainframe banking system made up of application modules, including sub-systems designed specifically for each new product and service.