Barclays has renegotiated and consolidated its existing communications contracts with BT into a single seven-year £500m deal that it believes will produce savings of 30%.
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The new contract is for the provision of new wide area network services in addition to local area network, voice, firewall and other services. Barclays said the new technology and services would offer a platform for the development and delivery of improved services with faster deployment.
The Barclays contract negotiation team was assisted by lawyers from DLA Piper, according to Danelle Dinsdale, technology partner at the law firm. “Barclays has renegotiated all its various service agreements into one framework agreement and has negotiated substantial savings on the back of that,” she said.
Barclays has led the way for the high-street banks in IT outsourcing and dealings with IT suppliers, signing a series of deals with different suppliers.
Last year the bank signed a six-year IT outsourcing deal with Accenture valued at more than £400m. The contract to outsource Barclays' application development division was one of the largest UK outsourcing deals of 2004 and followed a year of negotiations.
Barclays also outsourced its desktops to IT services company EDS, under a £211m deal signed in 2003.
Last month the bank extended a business outsourcing contract with Siemens Business Services by two years in a deal worth approximately £45m.