Financial services giant Barclays has signed a £400m deal with Accenture to outsource the application development for its UK banking systems.
The six-year contract will see 900 Barclays staff transfer to Accenture, following ‘tough’ negotiations with trade union Unify.
Barclays hopes that the deal will enable it to lower the costs of developing applications, as well as enabling it to respond quickly to market demands.
‘[It] is an important step in ensuring we deliver top-quartile capability and productivity in the vital areas of system development,’ said David Weymouth, chief information office, Barclays, in a statement.
As a result of the negotiations, Barclays and Accenture have agreed that there will be no compulsory redundancies within the first two-years of the contract. Employees will also maintain their full benefits as part of transfer.
Lead negotiator for Unifi, Keith Brooke said he was ‘happy with the deal’.
Barclays also handed its desktop management over to IT services firm EDS, in a £210m deal last year.