Source: EDB Business Partner
SpareBank 1 Alliance has entered into an agreement with EDB Business Partner to buy solutions and banking system operating services with an estimated total contract value of NOK 2.5 billion over the period 1 July 2007 to 31 December 2014.
SpareBank 1 has the option to extend the contract for a further two plus two years, and including this the agreement represents estimated total contract value of NOK 3.6 billion.
"This agreement with SpareBank 1 is strategically and commercially very important for EDB. It reinforces EDB's strong market position in Norway and the Nordic region, and represents the foundation for our continuing development in the bank and finance market over the next 10 years", explains Endre Rangnes, CEO of EDB.
Cost sharing for Nordic leadership
SpareBank 1 and EDB Business Partner have established a strategic collaboration for the development of bank and finance solutions that will ensure competitive business processes. These solutions will be based on the in-depth technical business expertise of SpareBank 1 and EDB's experience in the development of components for the bank and finance market. The new solutions are at the leading edge of the Nordic market, and will be delivered through a collaboration that shares the costs between the parties.
In addition, during the course of the contract EDB will migrate the banking operating services from a mainframe environment to a Unix solution, and this will ensure that SpareBank 1 achieves significant cost savings.
"We are very satisfied with the agreement. We made our choice after thoroughly evaluating the various systems available in the international market. Taking into account all the important factors, we believe that the agreement with EDB represents the best solution in terms of our business and technology requirements as well as the commercial terms agreed. The agreement also gives us access to capacity and flexibility to meet future changes in market requirements", comments Eldar Mathisen, CEO of SpareBank 1 Gruppen AS.
"I am delighted by the confidence the alliance has demonstrated in us by choosing EDB in competition with other major international vendors. This confirms that the solutions we offer are commpetitive and deliver what a major banking group needs to help realise its strategic objectives. The agreement to collaborate on developing new component-based stations is unique in the Nordic context, and will allow SpareBank 1 and EDB to increase their pace of innovation very significantly", explains Endre Rangnes, CEO of EDB.
The agreement with SpareBank 1 comes into effect from 1 July 2007, and replaces an existing agreement that originally ran to 31 December 2008. The parties have produced a timetable for completion of the final contractual documents.