DBS Bank And IBM Announce An IT Services Initiative

Agreement Covers Selected IT Services and Infrastructure Across Singapore and Hong Kong -- 500 DBS Staff Join IBM With Comparable Conditions And Broader Career Development Opportunities

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Singapore - 12 Nov 2002: DBS Bank ("DBS") and IBM today announced an agreement in which DBS will outsource selected IT services and infrastructure in Singapore and Hong Kong to IBM.

The nominal value of the contract is estimated at about S$1.2 billion (US$679 million) for Singapore and Hong Kong over 10 years. DBS can expect cost savings of about 20% over this period as a result of this outsourcing initiative as well as other cost saving measures to be undertaken by the bank. IBM will consolidate and enhance DBS' data centers in Singapore and Hong Kong, provide an integrated 24/7 customer helpdesk support, manage many of DBS' current applications, and provide systems management disciplines across the bank. DBS' IT group will continue to be responsible for IT services not included in the outsourcing, namely, IT strategy and architecture, IT security and strategic projects.

A centerpiece of the relationship will be the building of new IT computing facilities by IBM in Singapore and Hong Kong. The centers will exploit the very latest computer technologies to further improve the processing power, security and back up capability of DBS' IT operations.

The computing facilities will also help DBS integrate many of its applications and technology platforms into a single, cost-effective and highly secured computing environment. This integrated technology platform will help DBS better leverage IT to maximize the returns of its recent acquisitions and regional expansion program.

"DBS continuously reviews its IT services and options to look for better ways of delivering products and services to its customers. We are confident that IBM will meet, and exceed, our current high levels of service. This relationship will allow DBS to focus on our core competencies and strategic imperatives while leveraging the power of technology in a paced and sustainable manner. We are expecting to reap cost savings of about S$50 million over the first three years of the agreement. These savings will appear gradually after the first year," said Steve Ingram, Chief Information Officer, DBS Bank.

"We are excited to be given this opportunity to partner with DBS Bank as we have a long and successful history of working together," said Janet Ang, Managing Director, IBM Singapore. "DBS is taking the right steps in redirecting its resources and intellectual capacity to deliver world-class financial services to its customers. Using our "e-business on demand" technology and our proven delivery capabilities, combined with our own journey of transformation, IBM is eager to play a key role in DBS' efforts to build and sustain its competitive advantage."

Career Development
IBM has agreed to provide a comparable package in both role and compensation for the 500 DBS staff in-scope of the transfer in Hong Kong and Singapore.

Mr. Ingram said, "Joining an IT service provider will broaden the career development and opportunities for our IT staff. For those remaining, they will be playing an important role in shaping our future in supporting DBS' future business direction."

Ms. Ang added, "DBS employees coming on board will be joining a technology leader with a long history of managing the skills development, career opportunities and growth of IT professionals. Our strong local presence, 50 years in Singapore and 45 years in Hong Kong, will also ensure the smooth integration of DBS Bank's staff into our operations."

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