Deutsche Bank has signed a “multi-billion dollar agreement” to outsource large parts of its US banking IT infrastructure to Hewlett-Packard (HP).
The 10 year deal, which mainly covers Deutsche Bank’s wholesale banking, will see HP provide dedicated data centre services with the aim of reducing infrastructure costs for the bank.
Deutsche will retain activities such as IT architecture and information security.
“Through this partnership, Deutsche Bank will meet its long-term business objectives through a transformation of its IT infrastructure, including a customised HP Helion solution that will enable them to focus on creating and delivering new services for their clients,” said HP chair, president and chief executive Meg Whitman.
Deutsche Bank’s operations chief Henry Ritchotte said in a joint statement with HP yesterday that the deal would “improve the bank’s ability to launch new products and services and lay the foundation for the next phase of its digital strategy”.
The deal does not directly affect a 2003 accord Deutsche concluded with IBM to run its retail banking operations in Germany, including those of its high street branch network separately listed as Postbank.
The companies did not specify the exact value of the contract.
HP shares closed up 0.79 per cent yesterday to close at $38.49 in New York.