Commonwealth Bank of Australia Chooses EDS for IT Integration Services

Strategic Insights -

The Commonwealth Bank of Australia Ltd has selected global e-business services firm EDS to manage the integration of its technology services following the merger with Colonial Ltd. Russell Scrimshaw, head of technology, operations, and property at the Commonwealth Bank, emphasized the importance of system integration in the merger's success, citing EDS's proven track record. The new agreement builds on a 1997 deal worth $3 billion over 10 years, which reduced the bank's annual IT expenses by 20% while improving service levels. The deal is expected to add an additional $700 million to the bank's IT outlays over the next seven years.

Key Takeaways:

  • The Commonwealth Bank of Australia Ltd has chosen EDS to manage the integration of its technology services following the merger with Colonial Ltd.
  • Russell Scrimshaw, head of technology, operations, and property at the Commonwealth Bank, emphasized the importance of system integration in the merger's success, citing EDS's proven track record.
  • The new agreement builds on a 1997 deal worth $3 billion over 10 years, which reduced the bank's annual IT expenses by 20% while improving service levels.
  • The deal is expected to add an additional $700 million to the bank's IT outlays over the next seven years.
  • EDS will work with the Commonwealth Bank to finalize the details of the integration process over the next few months.
  • Existing agreements between Colonial and third-party IT providers will be assessed and potentially integrated into the new arrangement.
  • The merger aims to deliver an enhanced product range, improved services, and shareholder returns through a more efficient and internationally competitive organization.

Statistics:

  • The 1997 deal between the Commonwealth Bank and EDS was worth $3 billion over 10 years.
  • The deal reduced the bank's annual IT expenses by 20%.
  • The new agreement involving EDS is expected to add an additional $700 million to the bank's IT outlays over the next seven years.
  • The deal aims to deliver cost efficiencies, improve service levels, and enhance the bank's competitiveness.

Sources:

  • Asia Pulse, July 10, "Commonwealth Bank of Australia Ltd Seeks EDS for IT Integration Services"
  • Commonwealth Bank of Australia Ltd
  • EDS (Electronic Data Systems)