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EDS Selected to Manage Integration of Commonwealth Bank and Colonial Technology Services

Strategic Insights

— 2 min read

The Commonwealth Bank of Australia has chosen EDS to help manage the integration of technology services and e-business capabilities resulting from the bank's merger with Colonial Limited. The existing IT outsourcing contract between the Commonwealth Bank and EDS will be expanded to include the Colonial IT expenditure, adding up to $700 million to the bank's IT outlays over the next seven years. The integration of both organizations' systems is critical to the success of the merger, and EDS has been praised for its ability to deliver high-quality service and innovative thinking.

Key Takeaways:

  • The Commonwealth Bank and EDS have an existing IT outsourcing contract signed in September 1997, valued at approximately $3.0 billion over 10 years.
  • The contract has reduced the Bank's annual IT expenditures by about 20 percent, while improving service levels.
  • The new agreement, including the Colonial IT expenditure, is anticipated to add up to $700 million to the Bank's IT outlays over the next seven years.
  • The integration of both organizations' systems is crucial to the success of the merger.
  • EDS has been chosen to manage the integration of technology services and e-business capabilities due to its proven quality of service and innovative thinking.
  • The merger creates a financial services company with the No.1 position for domestic assets in banking in Australia and the No.1 position in retail funds under management.
  • EDS is a recognized global leader in providing E-business and information technology services to 9,000 business and government clients in about 50 countries around the world.

Statistics:

  • The existing IT outsourcing contract between the Commonwealth Bank and EDS is valued at approximately $3.0 billion over 10 years.
  • The contract has reduced the Bank's annual IT expenditures by about 20 percent.
  • The new agreement, including the Colonial IT expenditure, is anticipated to add up to $700 million to the Bank's IT outlays over the next seven years.
  • EDS reported revenues of $18.5 billion in 1999.
  • The company has 9,000 business and government clients in about 50 countries around the world.

Sources:

  • PRNewswire, Building on an existing long-term relationship, EDS has been selected to work with the Commonwealth Bank of Australia to help manage the integration of most of the technology services and E-business capabilities resulting from Australia's largest-ever merger -- between the Commonwealth Bank of Australia and Colonial Limited.
  • Commonwealth Bank of Australia, The Commonwealth Bank and EDS Sign Major IT Outsourcing Contract
  • EDS, About EDS: Vision Statement (EDS website)

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