Commonwealth Bank of Australia renews EDS' IT services contract for $350m
30 June 2006 | 2293 views | 0
The Commonwealth Bank of Australia and EDS (NYSE: EDS) today announced the signing of a new Information Technology and Telecommunications Master Agreement, which will see EDS continuing to deliver midrange, mainframe and storage solutions to the Commonwealth Bank until June 2012.
The new contract is valued at an additional US$350+ million.
EDS' 10 year contract with the Commonwealth Bank was the world's largest financial services outsourcing deal at its signing in 1997. The contract matures in October 2007 and the enterprise processing services component of the original contract is the first piece to be finalized.
On signing the agreement, Michael Harte, the Commonwealth Bank of Australia's CIO said, "This is a significant first step in the Bank achieving its key objectives of more effective spend and improving customer outcomes. Our renewed relationship is built on collaboration and understanding, and of aligning our goals to achieve the Bank's objectives."
Chris Mitchell, EDS Australia and New Zealand Managing Director said the extension was a vote of confidence in the EDS-Commonwealth Bank relationship and the excellent service EDS continues to deliver to the Bank since 1997.
"This is an important moment in the history of our relationship with the Commonwealth Bank," said Mitchell. "EDS is delighted to continue being a strategic part of one of the largest IT services relationships in Australia -- a relationship that created this industry in Australia. We are embarking on a new, more collaborative future together. This agreement will underpin all future service provisions and any expansion of services between EDS and the Bank."
The Commonwealth Bank is one of Australia's leading financial institutions, with over 35,000 employees and 1,000 branches across the country.
Over the last eight years, EDS and the Commonwealth Bank have successfully embarked on a number of large initiatives in addition to ongoing business as usual. These initiatives have included the branch platform roll out of the Bank's CommSee customer management system, the replacement of infrastructure for NetBank, the Colonial integration and end to end applications work for the Bank's lending systems.
Other major initiatives have included the refresh of 40,000 desktops, the rationalizing of 38 disparate consistent office environments (COEs) to two and major upgrades to the ATM network.
"EDS continues to align its objectives to the Bank's," added Mitchell. "We have worked hard over the last eight years to deliver innovative and cost effective solutions, and will continue to work hard over the next six years as we enter a new phase in this relationship."