Perth-based BankWest has extended its IT outsourcing contract for infrastructure services with Unisys West for another two years to the tune of an additional $26 million.
The original outsourcing agreement was signed in August 2000 for $190 million, Unisys West chief executive Murray Rose said.
Formed in August 2000 as a joint venture between BankWest and IT outsourcer and integrator Unisys, Unisys West is 51 per cent Unisys-owned and 49 per cent BankWest-owned.
Under the joint venture, Unisys provides IT services to BankWest's IT division. Those services include B2B e-commerce transaction services, data centre outsourcing, business process outsourcing, network management, helpdesk operations, disaster recovery services, managed services and application services provision.
The joint venture marked Unisys' more aggressive move into Western Australia's government and commercial outsourcing markets, and was also an attempt to compete squarely with the WA market's leading IT services firm CSC.
Under the extended contract, Unisys West will provide "incremental services" to BankWest until 2007. Those services will give Unisys West more flexibility and autonomy to provide comprehensive IT infrastructure services to the state's IT services market," Unisys West officials said in a statement on Friday.
The new agreement will also see Unisys West inherit all data centre and strategic IT assets from BankWest.
BankWest group managing director Terry Budge said he expects the extended arrangement to help the bank achieve more than $10 million in cost savings over the next five years.