The Bank of Queensland has extended its 10-year IT and business processes outsourcing agreement with EDS to 2014, in a deal worth another $140 million to the service provider.
The Bank of Queensland and EDS said in a joint statement that they had extended an outsourcing agreement two years "to further support continuing success" across Australia.
David Liddy, managing director at the bank, said the initial outsourcing agreement was estimated to save $100 million over the original 10-year period.
The two-year extension was worth another $140 million in revenue to EDS on top of the original $480 million agreed when the contract was signed in March 2002. The contract will now run until 2014.
"In fact, 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 on-going certainty and supports long-term planning processes."
Under the agreement, EDS manages all IT infrastructure, applications, business process services and customer and sales service requests.
The Bank of Queensland was extending its branch network in Queensland, New South Wales and Victoria. It was expected to increase its 92 branches to 163 in less than three years, the bank said.
"They have delivered major improvements in sales and service efficiencies, which have resulted from an upgrade of the bank's information technology infrastructure and improved back office processes," Liddy said.
Chris Mitchell, managing director at EDS, said the service provider had replaced the bank's entire core banking system, including back end, teller, customer relationship management, workflow and origination systems.
"We have also refreshed and upgraded its IT infrastructure, modernised its ATM fleet, rolled out internet banking and re-engineered the bank's back office operations," Mitchell said.