As part of its new multi-sourcing strategy, the Commonwealth Bank of Australia has signed a five-year information technology and telecommunications master agreement with EDS, valued at A$573 million (NZ$689 million). At the same time, Gen-i has lost some of the niche contracts it had with the bank, including managed mobile voice services, which have gone to Optus.
When the original ten-year EDS contract was signed in 1997, it was the world’s largest financial services outsourcing deal. The contract matures in October 2007, and the enterprise processing services component of the contract is the first piece to be finalised.
Michael Rensford, CBA’s general manager of telecom services, says the five-year Gen-i contract matured in September last year and that, under the bank’s new strategic sourcing strategy, it was decided to take some items to market.
“Gen-i will have data communications, fixed voice and the call centre for the next three years, which are a substantial proportion of all the business we had outsourced to them,” he says.
“We felt it was better to go to the market for some services where they are not the actual carrier, and Optus won the mobile business.”
Gen-i is still managing the bank’s 5,000 mobile devices until the transition to Optus occurs. Gen-i is a Vodafone reseller in Australia.
Gen-i Australia head of marketing Max Morrison says the company is now providing security services and IT services (unspecified), broadening the services it provides to the bank.
The new EDS contract is for midrange, mainframe and storage solutions.