ABN AMRO has announced a major IT infrastructure development, signing five international vendors to a contract worth approximately EU1.8 billion.
Under the agreement IBM, Infosys, Tata Consulting Services (TCS), Accenture and Patni will all reap the spoils of ABN AMRO's push to increase client satisfaction, provide higher operational efficiency, optimize operational risk and increase flexibility.
Described by the bank as a strategic move to improve company-wide IT capabilities, it is estimated that the agreement will save ABN AMRO up to EU258 million annually by 2007 and reduce the headcount of its global full-time equivalent IT staff from 5,000 to 1,500 within 18 months.
Many of its current staff will be transferred to the contracted vendors with IBM expected to take the bulk.
Big Blue will also handle the majority of the IT transformation, with the US technology corporation expected to oversee the Dutch bank's entire IT infrastructure services worldwide.
Closer to home, India's Infosys and TCS will be expected to provide application support and enhancement to the bank in several as yet unnamed business lines.
The implementation of these agreements will take at least 18 months.