Bank of Queensland Limited
and EDS announced a 10-year, US$250 million contract for EDS
to outsource and upgrade the Bank’s information technology infrastructure
and back office processes.
The agreement — in line with the Queensland Government’s Smart State
drive — will produce estimated savings of US$52 million of prospective costs
over the life of the contract for the Bank while also underpinning its
aggressive growth plans and improving efficiency.
Bank of Queensland Managing Director David Liddy said: “Partnering with
EDS lets us concentrate efficiently on areas where we create value: our
unfaltering commitment to customer service and broadening our reach through
improving our business and identifying opportunities.
“This initiative is a key part of the Bank’s wider strategy to double our
marketshare in Queensland and our network coverage of the State. It will
underpin our efforts to dramatically improve our efficiency, reduce our cost
to income ratio and open 34 new branches around the State by August 2004.
“The agreement paves the way for us to continually expand the business we
write without a corresponding increase in costs. It also 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
Full spectrum of business and IT services
Under the terms of the agreement, EDS will provide a comprehensive range
of business and IT services to support the Bank’s operations. EDS will:
— manage all of Bank of Queensland’s IT operations, including upgrading
its overall IT environment;
— deliver a new Internet banking capability for launch in the first half
of this year; and
— manage back office credit card, loan and mortgage processing and call
“This agreement demonstrates the full breadth of EDS’ capabilities across
IT infrastructure, applications development and support, business process
management and e-commerce solutions, combining to provide maximum value and
services to Bank of Queensland,” said EDS Australia Managing Director Don
Significant milestone for EDS Australia in Queensland
The Bank of Queensland agreement marks a significant milestone for EDS in
Australia, according to Easter.
“This agreement with Bank of Queensland signals a major foray into the
Queensland market for EDS, and is our first regional banking client,
consolidating EDS’ strong position in the financial services sector in this
dynamic region,” Easter said. “We look forward to establishing a strong
association with Bank of Queensland as we seek to support its growth ambitions
and offer new opportunities to those staff transitioning to EDS.”
Both organisations expect the 220 Bank of Queensland employees involved
will transition to EDS on terms comparable to their current employment,
increasing EDS’ workforce in Australia to approximately 7,000.
EDS, a leading provider of business and technology services in Australia,
has signed several large-scale outsourcing contracts with clients including
the South Australian Government, the Commonwealth Bank of Australia, Westpac,
Australian Taxation Office and Telstra.
About Bank of Queensland
Bank of Queensland is one of Australia’s most rapidly growing retail
banks. In October 2001 the Bank reported net profit after tax and significant
items of $24.1 million for the full year to 31 August 2001 — an increase of
8 per cent on the previous year. It achieved record sales volumes with
lending approvals up 29 per cent to $2.8 billion and assets under management
increasing 19 per cent to $4.2 billion for the year. Established in 1874, it
is a publicly listed company traded on the Australian Stock Exchange (BOQ)
since 1971. Find out more at
EDS, the leading global services company, provides strategy,
implementation and hosting for clients managing the business and technology
complexities of the digital economy. EDS brings together the world’s best
technologies to address critical client business imperatives. It helps
clients eliminate boundaries, collaborate in new ways, establish their
customers’ trust and continuously seek improvement. EDS, with its management
consulting subsidiary, A.T. Kearney, serves the world’s leading companies and
governments in 58 countries. EDS reported revenues of $21.5 billion in 2001.
The company’s stock is traded on the New York Stock Exchange and the London