Bank of Ireland has out-sourced its IT needs to HP Services, the outsourcing arm of Hewlett Packard, in a seven-year outsourcing contract worth $600 million.
The Bank of Ireland and HP are currently finalizing the terms of the contract and conducting due diligence. Under the terms of the agreement, HP will manage the Bank of Ireland’s desktop environment, mid-range servers, mainframes, networks, output and printing, and facilities. HP Services will also provide some customer support and consulting and integration services. HP Services is also expected to help the bank cut costs, and will share in any savings achieves.
Approximately 500 employees of the Bank of Ireland will be transferred to HP as part of the agreement.
HP has been a supplier of IT products and services to the Bank of Ireland since 1974 and currently provides the bank’s NonStop platform, Alpha systems, storage subsystems and ProLiant servers as well as desktop PCs to many of the bank’s units. HP also provides professional and customer support services to the bank.
“We have now begun exclusive discussions with HP and, subject to successful negotiations and due diligence, will appoint them as the supplier of our IT services for a period of seven years,” says Cyril Dunne, group chief information officer, Bank of Ireland.
“We look forward to working with the Bank of Ireland to achieve our shared and complementary business objectives,” adds Ann Livermore, executive vice president, HP Services. “With about 4,000 employees in Ireland and 10,000 employees in the United Kingdom, HP is uniquely positioned to provide an inspiring environment for transferring employees. This agreement will reinforce HP’s No. 1 position in this important market.”