New Zealand appears to be largely unaffected by what has been branded one of the biggest IT servicing contracts in the financial services sector.
Credit card giant American Express has signed a $US4 billion, seven-year IT contract with IBM Global Services. Under the deal, which goes into effect March 1, the New York-based credit card company will continue to oversee its applications, network personnel and IT strategy, while handing over the reins of its IT infrastructure — including some 2000 staff — to IBM.
While some 90 American Express staff in Australia will be affected by the move, just three of the card company’s 125 New Zealand staff work in IT.
American Express NZ spokesman Craig Dowling says the impact on both Australia and New Zealand has yet to be decided. “There have been no offers in that area, no offers put to staff. We are down the feeding chain,” he says.
New Zealand IT staff will be visited this week by their Australian-based boss, Robin Nicholson.
But Dowling, who believes this is one of the largest outsourcing deals in financial services, says any transferring of staff won’t be complete until the middle of the year for New Zealand, just after Australia has completed its changeover.