Bank of Queensland Extends EDS Outsourcing Agreement

Bank of Queensland announced that it had extended the outsourcing agreement by two years due to the success of the contract to date, particularly in ongoing savings and the support of the banks state-of-the-art IT system. Bank of Queensland Managing Director David Liddy said the two-year extension would continue the Banks annual savings and benefits from the outsource agreement, which are estimated to achieve $100 million in prospective cost savings over the original 10-year contract. The two-year extension is worth an additional AU$140 million in revenue to EDS on top of the original AU$480 million agreed when the contract was signed in March 2002. The contract will now run until 2014. Now one of Australias most technologically advanced banks, the Bank of Queensland, has embarked on an aggressive interstate expansion program, extending its branch network in Queensland, New South Wales and Victoria from 92 branches to 163 in less than three years. Under the outsourcing agreement signed in 2002, EDS manages all IT infrastructure, applications and all business process services. The fulfillment of customer and sales service requests are managed by EDS across consumer and business banking from multiple channels. Within the first three years of its agreement, EDS completed a major transformation of the Banks core legacy systems and business processes to support the Banks growth strategies.