IBM has secured a 10 year EUR2.5 billion outsourcing contract to manage Deutsche Bank's IT services across continental Europe.
Deutsche Bank announced in September that it was in negotiations with IBM to outsource its computer centres and server sites in Germany, Belgium, Italy, Luxembourg, Poland, Portugal, Spain and Switzerland.
IBM says it will set up a data centre in the Rhine-Main region in Germany and take on approximately 900 Deutsche Bank employees in Q1 2003.
Hermann-Josef Lamberti, Deutsche Bank COO, comments: "Deutsche Bank expects to save around EUR1 billion over 10 years."
He says the bank will exchange the fixed costs of running its own computer centres for variable costs based on usage.
The transaction is subject to approval by the respective bodies and regulatory authorities.