Deutsche Bank AG has awarded an IT outsourcing contract to IBM for an undisclosed amount, the company said yesterday.
In June, the Frankfurt-based bank had narrowed its list to IBM and CSC Ploenzke AG, the German subsidiary of IT services and consulting company Computer Sciences Corp.
The infrastructure to be outsourced includes computer centers and smaller server sites. About 900 of its employees in Europe will be affected by the move, the bank said in a statement.
IBM intends to create a European computer center in the Rhine-Main area, where Deutsche Bank is located. Under the deal, the company will provide IT services to other companies using the bank's outsourced infrastructure.
Not only does Deutsche Bank expect to reduce operating costs from outsourcing a chunk of its European IT operations, but it also expects to become more flexible in the use of its IT resources and ability to adopt new technologies. The bank also said it hopes to spur standardization in the global IT sector.
Deutsche Bank plans to hand over IT operations in Europe to IBM in the first quarter of 2003. The bank is currently reviewing the outsourcing of its global IT operations.