Posts Tagged ‘Westpac’

Westpac readies for outsourcing, hires Genpact

September 15th, 2014

Westpac Banking Corporation has selected business process outsourcing giant Genpact to demonstrate its abilities to run human resources and back office services, as a precursor to plans to outsource work in the coming months.outsourcing45

The Australian Financial Review revealed in June that the bank had gone to market to seek proposals from outsourcing providers for more efficient back office functions for its HR operations. Genpact has been selected as the preferred supplier, after pitching against other existing Westpac suppliers Accenture and Infosys.

Sources with knowledge of the plans told the Financial Review that the bank has not yet signed a contract with Genpact for the wholesale outsourcing, but has instead agreed with the company that it will perform a trial to prove itself, with a view to ramping up the program should it prove successful.

Both Westpac and Genpact declined to comment on the agreement, but sources said the bank was looking to move quickly and jobs would soon be moved offshore.

It is understood Genpact will initially provide 50 staff to Westpac in areas related to learning and development, but that the company will also conduct a consultancy review of the HR function to look at what outsourcing would be possible more broadly.

Other services that could be outsourced include workforce administration, payroll functions, benefits administration and some technology systems to manage and analyse employee data.

The contract would represent a major win for Genpact, which was originally started as a business unit in General Electric in 1997. It has embarked on a plan to expand its presence in Australia, hiring more local staff and targeting the financial services sector.

When asked about the plan, independent outsourcing expert Mohit Sharma of Mindfields said it could prove to be a successful move for Westpac.

“If Westpac go with Genpact it is a rational choice as they have a consultative approach towards outsourcing, which is the most important evaluation parameter for the selection of a vendor for a sensitive process like HR,” Mr Sharma said. “Other Australian organsiations who have outsourced HR processes to pure HR vendors are struggling or not getting value beyond myopic cost arbitrage.”

Source:http://www.afr.com/p/technology/westpac_selects_supplier_in_hr_outsourcing_njT6efTwY2hhN9ZkYKIvyN

IBM on board as Westpac bids to become NZ’s leading digital bank

August 21st, 2014

IBM has today announced that Westpac New Zealand has selected the company’s private cloud technology to support its goal to be New Zealand’s leading digital bank.Outsourcing52

The new five year agreement is part of an extensive services and technology contract which includes Westpac migrating some of its business critical IT systems into IBM’s Auckland data centre, enabling enhanced customer service.

The agreement supports Westpac as it embarks on a significant transformation from a traditional bank to one that uses cloud computing enabling it to address key market trends such as social and mobile adoption to influence the way consumers prefer to bank today.

As one of IBM’s long-term strategic outsourcing clients, by adopting private cloud capabilities to develop and test tools within a dedicated environment, Westpac says it will be able to deploy new online and mobile banking services faster and across multiple devices and platforms in response to customer demand.

As customers’ digital footprints expand and the bank’s security demands change, IBM is helping Westpac respond with enhanced online security features, such as the ability to manage identity and access through a single user ID.

Westpac’s Interim Chief Information Officer Jason Millett says IBM’s private cloud platform would further enable increased development of Westpac’s digital capabilities as it responds to customer demands for a more personalised, convenient way of banking.

According to Gartner, by 2016, poor return on equity will drive more than 60 percent of banks worldwide to process the majority of their transactions in the cloud.

“The platform provides a robust and advanced infrastructure enabling a seamless online banking experience across multiple devices,” Millet adds.

“This supports our goal of being New Zealand’s leading digital bank.

“In addition, IBM’s local and global expertise, commitment to work within our regulatory framework, deep knowledge of our business and industry, and responsive commercial models provide a market leading offering that can support our changing needs over time.”

Westpac will also optimise its IT infrastructure by renewing IBM mainframe services, midrange and storage platforms and migrating some services to IBM’s Level 3 data centre providing even greater data resiliency.

To meet Westpac’s optimisation objectives, IBM leveraged its global Research team and Distinguished Engineers who advised on new technology, business processes and IT governance, including more flexible, cost effective and agile approaches to IT service delivery.

“Westpac’s underlying IT systems must operate uninterrupted, be secure and be able to support future needs as customers increasingly engage on mobiles and tablet devices,” adds Rob Lee, IBM New Zealand Managing Director.

“Our relationship with Westpac New Zealand is one of our longest and closest, marked by a high degree of innovation and collaboration.

“We continue to invest in skills and advanced technologies including our cloud solutions to help deliver on their vision to be New Zealand’s leading digital bank.”

IBM has prime responsibility for managing Westpac’s key infrastructure services, under an agreement that was first signed in 2000. In 2013 Westpac became one of the first clients of IBM New Zealand’s Delivery Centre at Unitec in Auckland, employing post-graduate and under-graduate computer science students.

Westpac extended its strategic outsourcing agreement with IBM based on the strength of the relationship and IBM’s ability to bring new innovations such as cloud technology to the IT infrastructure.

IBM New Zealand launched its hybrid cloud in March to offer local customers greater visibility, transparency and control of data security and placement.

This followed an announcement earlier in the year that IBM will invest $1.2billion globally into comprehensively expanding its cloud footprint.

IBM’s global data centre network is key to helping enterprise clients move operations into the cloud in a hybrid model that preserves existing IT investments and connects on premises systems of record with new cloud-based systems of engagement achieving the best of both worlds.

Source:http://techday.com/it-brief/news/ibm-on-board-as-westpac-bids-to-become-nzs-leading-digital-bank/190513/

Infy, HCL in race for Westpac’s $500-mn outsourcing contract

December 18th, 2009

Australia’s second-biggest bank Westpac is seeking outsourcing suppliers for contracts worth up to $500 million, with India’s top tech firms Infosys, HCL and others bidding against multinational rivals IBM and HP-EDS.

The bank, which is currently merging its systems with St George Bank, is being advised by a consulting firm on fleshing out an IT transformation programme, aimed at saving over $400 million from operations by 2011.

Australia’s top banks including Westpac, National Australia Bank (NAB), Commonwealth Bank of Australia and ANZ will invest almost $4 billion on technology this year, according to experts tracking the industry. The country’s IT market is worth around $39 billion, according to research firm Forrester.

“HCL, Infosys and Wipro, apart from IBM, are already in discussions with Westpac for these contracts — offshoring being considered as a critical portion of these engagements,” said a senior executive at one of the top tech firms exploring this opportunity. He requested anonymity because he is not authorised to comment on any potential business.

For Indian vendors, Westpac contract offers an opportunity to gain business from IBM, which is due to renew its contract with the bank next year. While Infosys declined to offer any comments because of its ‘financial silence period’, officials at HCL did not respond to an email query sent by ET on Thursday. Westpac officials, too, did not respond to the ET query.

Westpac, which acquired St George Bank last year for $19 billion, wants to have a common general ledger and consolidate other systems, including payroll. The IT integration costs alone will be around $338 million, apart from an additional $168 million being earmarked towards outsourcing and restructuring.

“Apart from the integration with St George, Westpac is also seeking suppliers for over $250-million application development and maintenance contract,” a consultant said.

Source: http://economictimes.indiatimes.com/infotech/ites/Infy-HCL-in-race-for-Westpacs-500-mn-outsourcing-contract/articleshow/5349895.cms

IBM looks on as Westpac’s Kelly says mega outsourcing trend is shifting

November 5th, 2009

Westpac CEO Gail Kelly has broadly hinted that the bank is unlikely to renew its decade-long IT outsourcing deal with IBM, as banks move away from all-in-one mega deals to more tactical best-of-breed outsourcing arrangements.
Speaking to analysts after the presentation of the Australian bank’s financial results, Kelly suggested that the banking industry’s fixation with mega outsourcing deals was drawing to a close.

“Ten years ago there were a number of large institutions that went for the all-in outsourcing arrangement, but I think that the models have changed,” she said. “I think one is much more likely to look at the different elements and make sure you have the right partner for all the elements; your desktop may be a different solution to your main frame for example.”

The switch in emphasis implies a rethink of the bank’s ten-year multi-billion dollar deal with IBM, which entailed the outsourcing of mainframe and mid-range computing and desktop services in 2000 and is due to expire next year.

Westpac is currently working through a A$700 million programme to integrate its operations with recently-acquired St George Bank. Of the $392 million so far spent on the project, $146 million was spent on IT systems and operations, with a further $103 million attributed to restructuring and outsourcing.

Kelly said that the bank will continue to lean on a mix of outsourcing and offshoring as it completes the integration project: “With the very significant program of work we’ve got on our agenda of the next few years with regards to technology we could not possibly actually source all the skills we need right here so it makes sense for us to leverage skills as they exist elsewhere; perhaps with IBM themselves and maybe with developers elsewhere.”

Source:http://www.finextra.com/fullstory.asp?id=20700

Westpac CEO hints at non-renewal of IBM outsourcing contract

November 4th, 2009

Westpac CEO Gail Kelly has suggested the bank is likely to choose not to renew its decade long outsourcing relationship with IBM, due to expire next year, in line with a trend to move away from decade long all-of-IT approaches to sourcing.

Speaking at a media conference following the announcement of the bank’s full year financial results, Kelly said that mainstream opinion on IT outsourcing models was swinging back from decade-long mega-deals toward a best-of-breed approach.

“Ten years ago there were a number of large institutions that went for the all in outsourcing arrangement, but I think that the models have changed,” she said. “I think one is much more likely to look at the different elements and make sure you have the right partner for all the elements – your desktop may be a different solution to your main frame for example.

“But, we have a good relationship with IBM and [CIO] Bob McKinnon and his team have been working extensively on that relationship with IBM and its been very healthy over the course of this year so I feel comfortable with that.”

Kelly also suggested that the bank would increasingly look to offshoring to meet its IT skills and services needs as the bank works through its St George integration and IT transformation.

“With the very significant program of work we’ve got on our agenda of the next few years with regards to technology we could not possibly actually source all the skills we need right here so it makes sense for us to leverage skills as they exist elsewhere – perhaps with IBM themselves and maybe with developers elsewhere…”

The speculation over whether the bank will renew its relationship with IBM goes back years, with the architect of the deal – then CIO Mary Ann Maxwel debating in 2007 whether the contract would be re-signed.

At the time, Maxwell said it was not surprising that the big banks were increasingly comfortable with managing more sophisticated outsourcing and multi-sourcing relationships.

Kelly’s comments follow the announcement of the bank’s full year financial results to 30 September 2009 which saw the bank report a statutory net profit of $3,446m, down 11 per cent on the previous financial year; it also reported an economic profit of $2,094m, down 25 per cent.

Speaking at the presentation of the results, Westpac CFO Phil Coffey said the year had seen significant investment in the reliability, capacity and service of the bank’s IT including rolling out 12,000 PCs and upgrading its network to Telstra’s NextG network.

The bank also reported that its integration with St George was progressing with $392m being spent up to 30 September 2009 out of an overall integration budget of $700m.

Of the $392m total, $146m had been spent on IT, systems and operation, $103 million on restructuring and outsourcing, and $74 million on program governance and strategy development. A further $54m had been spent on transaction costs and stamp duty, and $15m on revenue and retention investment.

The bank also reported that expense synergies for the year to September 30 had reached $143m – 19 per cent ahead of initial estimates.

This had been achieved through the reduction of 1,275 permanent and contractor roles, saving $99m. Through rationalizing sourcing arrangements and areas of duplication the bank had further $44.

In June the bank said it was pushing ahead with core changes to its mammoth transformation project set to slash reporting times and balance financial control following its merger with St George.In May the bank said it would derive much of its future IT innovation and costs savings from a cross pollination of IT systems between itself and St George, which was acquired by the bank last year.

Source:http://www.computerworld.com.au/article/324985/westpac_ceo_hints_non-renewal_ibm_outsourcing_contract

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