AT&T's and IBM's outsourcing deal with US financial institution Banc One could be the start of a larger trend in the financial services industry, the companies claimed this week.
The Technology One alliance is being formed by two contracts, worth nearly $2 billion between them. Under a six-year, $1.4 billion deal, AT&T Solutions will manage Banc One's voice and data networking requirements, transforming its legacy communications network into a state-of-the-art IP based networking platform.
AT&T said the deal is the largest ever for its services business, and the biggest networking deal in the financial services industry.
Banc One also signed a seven-year $420 million contract with IBM Global Services to manage the bulk of its data centre operations, including its helpdesk support, and mainframe and midrange server development.
"The Technology One alliance helps us by incorporating two high powered technology and networking companies in our planning process, increasing our competitiveness and realising a higher return on our investment in technology," said Marv Adams, chief technology officer at Banc One. The deal would allow Banc One to respond "more nimbly to growth opportunities", he said.
Banc One will implement IBM's enterprise systems management solution, which is designed to provide end-to-end systems management, as the worldwide commercial development site. IBM hopes to offer this to other companies.
Both IBM and AT&T said they will look at expanding the deal and offering it to other customers.
"As we enter the new era of digital commerce, the financial services industry faces an enourmously challenging and complex range of networking requirements," said Rick Roscitt, president and chief executive officer of AT&T Solutions.
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