WestpacTrust looks to IBM, EDS as outsourcing option

WestpacTrust is evaluating the outsourcing of its information technology in New Zealand. Computerworld understands an initial approach will see either IBM or EDS win the business to warehouse some of the bank's equipment. Both companies are also already head to head in the likely outsourcing of much of Telecom's IT.

WestpacTrust is evaluating the outsourcing of its information technology in New Zealand.

Computerworld understands an initial approach will see either IBM or EDS win the business to warehouse some of the bank’s equipment. It’s understood a request for information has been issued to both parties, which are also head to head in the likely outsourcing of much of Telecom’s IT.

It’s a sign of the times. IDC estimates that the outsourcing and facilities management market in New Zealand will be worth $180 million this year, compared with $158 million in 1997. The research company predicts a compound annual growth rate of 10.9% through to 2002.

“Outsourcing and facilities management will grow the fastest of all the market segments we measure,” says IDC manager Dinesh Kumar.

WestpacTrust is also understood to be planning to outsource its cheque imaging later this year. EDS, which is the bank’s largest IT supplier, will be the favourite to win that business, said by market sources to be worth around $30 million.

If the bank outsources everything, the deal will be much bigger. WestpacTrust currently has four IBM mainframes and a lot of Hitachi DASD storage technology.

The bank’s CIO, Nancy Neal, didn’t respond to phone calls from Computerworld. In Australia there have been reports of Westpac and ANZ having discussions about building a common back-office system.

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