HP wins major outsourcing deal

Hewlett-Packard has signed an outsourcing deal with a major Canadian bank.

Hewlett-Packard has signed an outsourcing deal with a major Canadian bank.

The deal, worth C$420m (£171m), will see Hewlett-Packard Canada upgrade and manage TD Bank Financial Group's national automated banking machines (ABMs) and point-of-sale (POS) transaction infrastructure over the next seven years.

HP will take over the delivery, upgrades and management of about 2,400 of TD's Green Machines, ABMs and POS networks, as well as taking ownership of all equipment and transfering 50 TD employees.

HP has provided TD with service desk, datacentre operations, integrated management and communications as well as HP ProLiant servers and HP NonStop switching gear in the past, but this is the first true outsourcing relationship between the parties.

HP Canada president and chief executive Paul Tsaparis said it was an "honour for HP to be entrusted with the delivery and management of TD's Green Machine network".

For Chuck Hounsell, senior vice-president with TD Bank Financial Group, the deal represents a strategic transformation of TD's ABM and POS services and will provide an always-on network of Green Machines.

"This relationship will produce significant benefits," Hounsell said. "[We will] reduce operating costs, increase productivity - there is a shift from fixed technology costs and a reduction in technology risk."

The deal, which has been two years in the making, will also enable TD to go after new market opportunities in the merchant business space. Hounsell said that although the technical changes have yet to commence, the planning and development is well under way.

"A strong partner makes it easier for us to come up with new solutions," Hounsell said. "This is a dramatically larger deal than what we have been doing so far. We are not taking an existing solution and asking someone else to manage it. We are developing a new solution and that is part of the reason why it took us two years to get here."

Tsaparis added that both corporations took the time to ensure the products developed would meet both the current and future needs of customers.

The biggest milestone, according to Hounsell, will be in 2006 when the bank's entire network is able to service people with disabilities, a goal the HP deal will help realise.

"We will probably be the first to have our network fully compliant and have 100% of our machines able to service people with disabilities and this new technology infrastructure will make that reliable and provide easier interaction," he said.

HP has called on The Diebold Company to provide ABM terminals and first- and second-line maintenance; ACI Worldwide will provide its BASE24 core switching solution and applications development and maintenance services; and Phoenix Interactive Design will bring ABM application software and application development services, while Intria has been brought in to provide business process outsourcing services, including cash management and forecasting.

Carly Suppa writes for ITWorldCanada

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