IBM lands up in large outsourcing deal worth $26 billion

January 4, 2012: In a contract deal worth USD 2.6 billion signed by the Spanish savings bank, la Caixa, IBM has emerged as the lead contractor. The contract is to manage the Information Technology infrastructure for the next 10 years. According to the deal IBM will offer services that will amount to half of the total, while all other third parties will offer the rest.

The deal put the responsibility of hosting la Caixa systems on IBM. The consultants from IBM will join with the IT department of the bank, la Serveis Informaticas la Caixa, to handle the banks IT infrastructure in Barcelona and Cerdanyola del Valles data centers. IBM will again join hands with the team from the IT department of the bank in developing mobile applications, social media and cloud computing.

The la Caixa bank has commented that the outsourcing contract with IBM will help them to offer exceptional service to their customers and to enjoy competitive advantages in an industry where innovation and emerging technologies are important for meeting the growth objectives. They added that the contract deal with IBM will bring in a saving of 400 million euros to the bank over the contract period of 10 years.

The bank plans to introduce the new mobile and cloud computing technologies to grow their business in Spain and other parts of the world. The objective is to be identified as a bank using new technology to reach financial services customer.

The contract also involves collaboration between the banks Innovation center and IBM’s research centers. They will work together to develop technologies that are directed at consumer banking and innovations in business processes.

According to IBM, for Spain, Portugal and Greece, they have been trusted partner of the bank for over 50 years and have provided services over the years. The 50 year partnership has made the bank a customer of IBM 360. IBM 360 is the first line of mainframes which is intended for general purpose and was launched in 1964.   

IBM has entered into a series of similar deals with various banks across the globe over the last six months. The banks with which contracts were signed include Banco Santander which serves Spain and Latin America, Westpac Bank which serves New Zealand and MCB Bank Limited which serves Pakistan. Banco Santander is one of the leading banks in the Europe.

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