Barclays Bank is embarking on a multimillion-pound programme to
update the IT in its network of branches as part of a company-wide
drive to improve the efficiency of its computer systems and reduce
overheads.
The bank is spending an estimated £200m to replace outdated branch
hardware and software, networks systems, storage systems and its
automatic teller machine (ATM) infrastructure with state-of-the-art
equipment, through a mixture of outsourcing and in-house
development, people close to the project have told Computer
Weekly.
News of the plan comes as Barclays is in negotiations with IBM to
outsource the management of its entire IT infrastructure in a deal
estimated to be worth more than £100m a year.
IBM is believed to be the leading contender for the contract to
manage and roll out a complete refit of Barclays IT branch systems
by the middle of 2003. The deal would be worth an estimated £50m.
The programme, dubbed Exodus, could ultimately allow Barclays to
reduce the number of staff at its branches by automating some
manual processes - a key part of the bank's long-standing goal to
reduce costs across the organisation by £1bn by 2003.
Under the proposed deal, IBM will manage the roll out of Dell
desktop equipment running Microsoft and Oracle applications to
Barclays branches around the country. The bank is expected to
deploy proprietary smartcards and cryptography to secure access to
the systems.
IBM is also tipped for the contract to provide training to branch
staff on how to operate the new systems, using electronic learning
materials developed by e-learning specialist Adval, which has a
long-standing relationship with the bank.
Separately, Barclays is considering plans to outsource the
management of its ageing ATM network, in a contract that could be
worth more than £15m a year. NCR is one of the companies said to be
tendering for the work.
Barclays is expected to make an announcement shortly about the
future of more than 200 IT staff in its infrastructure, data
storage and support operations, which are also under consideration
for outsourcing.
A Barclays spokesman said, "Barclays is working with multiple
suppliers on a programme to replace elements of its technology on
its sites. The first phase of renewal, starting later this year,
will improve the efficiency of the bank's voucher [cheque]
processing systems."