Westpac joins outsourcing fray

Westpac plans to join its competitor, the Commonwealth Bank of Australia, in outsourcing its IT and telecommunications infrastructure.

The bank has released a Request for Proposal to manage its core banking technology operations, including its mainframe and mid-range computers, PCs, networks and telco requirements in Australia, New Zealand and for its Pacific Regional Banking section. Systems development, strategy and architecture would remain in-house, Westpac officials said.

CSC, EDS and IBM GSA, along with a number of smaller telcos and managed network service providers, have been invited to respond to the request.

Westpac officials expect the feasibility and tendering process to take up to 15 months. Up to 1000 Westpac staff would be affected by the outsourcing, with the bulk of them expected to be employed by the successful tenderer, Westpac said.

The Commonwealth Bank outsourced its IT infrastructure to EDS in a 10-year, $5 billion deal in September 1997.

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More about Commonwealth Bank of AustraliaCommonwealth Bank of AustraliaCommonwealth Bank of AustraliaCSC AustraliaEDS AustraliaGSA GroupIBM AustraliaIBM GSAWestpacWestpac

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