The Commonwealth Bank (CBA) has announced Telstra is to be the beneficiary of a 10 year, up to $1 billion, managed service contract ahead of a planned telecommunications network upgrade aimed at creating a future-proof IT platform.
Under the outsourcing deal, worth up to $100 million per year, Telstra will provide next generation telecommunications capabilities and fully managed services to the bank’s branches, contact centres, eftpos network and non-branch ATMs.
The significant business transformation project is also aimed at increasing customer convenience and accessibility which will help support the bank’s customer satisfaction goals.
In an ASX statement Michael Harte, group executive enterprise services and CIO, said the agreement, which is part of the organisation’s ‘Smart Sourcing’ strategy, would help align execution with business outcomes.
“Our arrangement with Telstra is a partnership which is directly focused on customer satisfaction through well defined shared goals, commitments and business outcomes,” he said. “This is the first time we have stuck a deal of this kind.”
The Smart Sourcing strategy, as articulated by the CBA, aims to progressively review service provision to drive enhancements within the business.
David Thodey, Telstra Enterprise & Government Group managing director said the company’s Next IP and Next G networks would play a fundamental role in achieving CBA’s transaction and customer service objectives.
Telstra will begin transitioning the management of the CBA’s network services from current provider Gen-I today, however Gen-i will continue to continue to work on other projects and provide strategic support.
The deal follows similar business transformation outsourcing announcements from the banking sector.
In December, BankWest announced it had signed $2.5 million contract to outsource network monitoring for more than 1500 devices over two years.
The deal was aimed at reducing network problems over the BankWest and St Andrew's networks which connect 200 sites across Australia.