IBM (NYSE: IBM) today announced that The Hokkoku Bank in Japan has extended its strategic outsourcing contract for an additional six years and eight months.
As part of the agreement, IBM Japan will manage the operation and maintenance of the company's information technology (IT) system.
The Hokkoku Bank's business plan includes enhancing the organization's capabilities, reducing overall operational costs, managing risk and compliance and improving productivity. IBM will help The Hokkoku Bank realize its strategy through the IT infrastructure services agreement.
IBM was selected for the extended agreement based on its proven service quality and business contribution in the previous outsourcing agreement signed in 2000. IBM helped stabilize the company's information system and increase operational efficiency by using standard business processes and automation.
In the new agreement, IBM Japan will provide flexible central processing unit (CPU) and software resources based on The Hokkoku Bank's business needs through data center and mainframe hosting services. The support by IBM Japan will help The Hokkoku Bank further optimize its IT investments and operational efficiencies.
The Hokkoku Bank is a member of the "TSUBASA Project" which is a system sharing alliance with Chiba Bank, Daishi Bank, Chugoku Bank and Iyo Bank. IBM Japan has supported the project through the standardization of administrative work by using a standard business platform for banking as well as developing the call center systems, and will continue contributing to the project's success through the new outsourcing contract.
The new agreement was signed in March 2009 and follows the original ten-year contract signed in December 2000.