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Posts Tagged ‘bank’
Featured, News - Monday, November 22, 2010 9:30 - 0 Comments
IBM retains Westpac outsourcing throne
This morning top-tier bank Westpac revealed it would renew its comprehensive technology outsourcing contract with IBM for a further five years, with the bank’s technology chief Bob McKinnon (pictured) stating the relationship had improved greatly in recent years.
The bank’s initial contract with IBM was signed ten years ago for an initial total value of $2.3 billion. Since that time it has become one of the nation’s longest-running and highest value technology outsourcing arrangements. However, like any long-running marriage, the relationship has not been without a few bumps on the road.
In August 2006 then-Westpac chief security officer David Backley publicly spoke of the bank’s “battle” with Big Blue over security governance. And just a few weeks ago, Westpac group executive of technology Bob McKinnon said the bank had set out two years ago to decide whether it could “rebuild” the IBM relationship.
Over the years, Westpac has brought a number of other technology services partners on board — particularly in India, where it uses other companies like TCS, Wipro and Infosys alongside IBM. Today, however, McKinnon said things had improved.
“I’m proud to say that our relationship with IBM has come a long way over the past couple of years, and we’ve made significant inroads to improve the reliability of our systems,” he said in a statement. “In parallel, we’ve jointly approached commercial negotiations in the right spirit, collectively shaping this new IT services contract which will drive a very different relationship and set us up for the future — aligning our companies to a shared vision, strategy and values.”
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