EDS banks on Queensland

EDS has scored another tactical victory in its battle for to secure smaller and more lucrative contracts, this time with .Net-centric Bank of Queensland (BoQ), spinning its current 10-year outsourcing agreement out to 12 years.

First contracted in 2002, EDS was taken on by the bank to conduct a ground-up IT overhaul which included a complete infrastructure replacement and rollout of Internet banking as the bank took a greenfields approach to its technology strategy.

The total worth of the BoQ contract is now $620 million over 12 years to 2014, or a $51.6 million a year and comes at a time when the future of EDS' decade-long tenure at the Commonwealth Bank (CBA) is being called into question by market analysts.

Last week, the CBA jettisoned its 35 percent stake in EDS Australia for $173 million with the bank saying an equity investment in an outsourcing provider was no longer core to the bank's future strategic direction.

CBA's 10-year contract with EDS, inked in 1998, is valued at $5 billion and ends in two years.

While the BoQ extension will undoubtedly provide a level of comfort to EDS, the bank's IT operation is also widely regarded one of the least risky in Australia by virtue of the fact it was to successfully demolish and rebuild its IT architecture prior to taking a substantial push to expand the bank interstate in 2003.

As a resulting, BoQ carries almost no legacy applications in comparison to the dozens its competitors are required to support as it effectively only entered the online banking market in 2002 - a move that does not appear to have hampered expansion plans with BoQ expanding its branches from 92 branches to 163 since its IT overhaul.

However, the contract extension has also come at the expense of margins for EDS, with BoQ managing director David Liddy estimating the new contract extension will net savings of $100 million in costs "over and above the original 10-year contract".

"We expect the annual benefits to exceed our original expectations by the end of the current contract," Liddy said. "The extension also gives the bank ongoing certainty and supports long-term planning processes."

Liddy said BoQ aimed to open "100 interstate branches by August 2006", adding he was "confident of achieving increased efficiencies from our new banking platform."

Under the outsourcing agreement, EDS currently manages all IT infrastructure, applications and business process services with "fulfilment of customer and sales service requests" also managed by EDS across consumer and business banking from multiple channels.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Julian Bajkowski

Computerworld
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?