The Bank of Queensland will outsource and upgrade its IT infrastructure in a $480 million deal which it expects will save $100 million over the life of the contract.
In the 10-year deal, with EDS, the services provider will be responsible for the maintenance and upgrading of the bank's existing infrastructure and the development of a new Internet banking facility for launch in the first half of this year.
Under the terms of the agreement, EDS will also manage back-office credit card, loan and mortgage processing and call centre operations.
David Liddy, managing director of Bank of Queensland, said the agreement, which will see around 220 of the bank's IT staff join EDS, will also let the bank "dramatically improve our efficiency, reduce our cost-to-income ratio and open 34 new branches around the state by August 2004".
"This initiative is a key part of the bank's wider strategy to double our market share in Queensland and our network coverage of the state.
"The agreement allows the bank to pursue organic or inorganic growth strategies and improves our ability to provide products and services more quickly, accurately and consistently to our customers," Liddy said.