Leading global services company EDS builds Smart State presence
BRISBANE, Australia - Bank of Queensland Limited and EDS today announced a 10-year, A$480 million contract for EDS to outsource and upgrade the Bank's information technology (IT) infrastructure and back office processes. The agreement - in line with the Queensland Government's Smart State drive - will produce estimated savings of A$100 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 customers."
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 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 centre operations.
"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 Easter.
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 www.boq.com.au.
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 60 countries. EDS reported revenues of $21.5 billion in 2001. The company's stock is traded on the New York Stock Exchange (NYSE: EDS) and the London Stock Exchange. Learn more at www.eds.com.
The statements in this news release that are not historical statements, including statements regarding the amount of new contract values, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond EDS' control, that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS' most recent Form 10-Q. EDS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.