EDS plans to offer mortgage processing and IT support services to other banks through its joint venture company.
The expansion of EDS Credit Services, which was formed in 2000 under a deal with Abbey National, comes as the company attempts to regain momentum after the loss of several large contracts, including a multibillion-pound outsourcing contract with the Inland Revenue and the cancellation last month of a 10-year, £90m deal with the NHS for e-mail and directory services.
"The pitch for [EDS Credit Services] to IT directors is that it can lower costs and deliver a higher service," said Robert Baldock, global leader for the financial services practices at EDS. "We are the largest independent processor of mortgages in the world."
Business process outsourcing services have shown steady growth over the past few years particularly for back-office, administrative and IT functions.
EDS is also looking to capitalise on its expertise in running call centres, of which it has about 280 worldwide, by assessing the effectiveness of organisations' CRM systems and entering into a contract to help the user achieve additional benefits and savings.