Westpac expects to complete its "resolutioning" contract with IBM by the end of the year, says CIO Ross Hughson.
The bank has been revisiting its ten-year outsourcing deal with IBM, now in its fourth year, to address changes of technology that have affected pricing.
It began addressing the issues late last year. The first contract change is for security, with eight others to come. Hughson says security spend began at 3–5% of the total IT budget but is now much closer to 10%.
“We had to go back and look at this sort of thing.”
Originally, the telecommunications component was part of the main outsourcing contract but this was later broken out so that TelstraClear had a direct relationship.
Hughson says Westpac will go to market for telecommunications in the second quarter, looking for a three-to-five-year contract.