Bank of America has signed a 10-year, £2.85bn ($4.5bn) deal for
managed network and IT services with Texas-based outsourcer
EDS.
From February, EDS will help Bank of America, the third-largest
bank in the US, transform its voice and data network systems, the
companies said in a joint statement.
IEDS will also redesign and install Bank of America's optical
network and provide the company with customer help desk
services.
"It is important for us to capitalise on the expertise of partners
like EDS to help us align our resources with business needs, " said
Don Obert, technology services executive at Bank of America.
Coley Clark, president of EDS's financial global industry solutions
group, said the outsourcing deal would "provide consistency and
predictability" to Bank of America's infrastructure.
The deal is EDS's first multibillion-dollar contract since
September, when it issued a shock profits warning after problems
with two major contracts and cuts in corporate spending on computer
services.
Since then, EDS has lost out on major contracts with US bank JP
Morgan and household goods giant Procter & Gamble.
Clark told CW360 that EDS hoped to sign a £1bn IT outsourcing deal
with ABN Amro, Holland's largest bank, by the end of the
year.
The outsourcer is in exclusive talks to provide technology services
to Bank of Bermuda as part of a 12-year, $375m deal.
EDS is also is negotiating on a major desktop services outsourcing
contract with Barclays Bank.