ABN Amro awards billion pound deal

Dutch financial services group ABN Amro has awarded a five year IT
outsourcing deal worth €1.8bn (£1.2bn) to five consulting firms including IBM,
Accenture, Infosys Technologies, Tata Consultancy Services and Patni Computer

The only downside is that it will lead to the loss of 1,500 IT jobs at the
bank over the next 18 months.

The contract is part of cost-cutting measures announced by ABN Amro last
December when it said it planned to axe 2,850 jobs to generate annual savings of
€770m from 2007 onwards.

The deal is one of the largest ever in European banking and will generate
annual savings of €258m from 2007.

IBM has won the main slice of the contract and will earn about €1.5bn in
order to maintain the bank’s global IT infrastructure, including servers,
storage systems, data centres and desktops from November this year.

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