IT major IBM has signed a $1.3 billion IT infrastructure deal with Dexia’s financial institution group in Europe.
These financial institutions in Europe were previously managed by Associated Dexia Technology Services (ADTS).
IBM will also take a majority stake in ADTS (renamed as Innovative Solutions for Finance (ISFF) with signed sourcing contracts at a value of $1.3 billion over seven years. IBM will implement a cloud infrastructure to expand ISFF services into new markets and optimize the efficiency of its existing information technology management.
“Our integrated transformational approach, the introduction of new and innovative technologies and solutions, like cloud and analytics and our expertise in the financial sector will enable these customers to differentiate themselves in an accelerated way versus their competitors in their respective markets,” said Bart van den Daele, general manager Strategic Outsourcing, IBM Europe.
Associated Dexia Technology Services was founded in 2006 to deliver IT services to financial institutions formerly within the Dexia Group, such as Belfius Bank, Belfius Insurance and Banque Internationale à Luxembourg.
The agreement enables Dexia and the ISFF clients formerly within the Dexia Group to segregate themselves as customers and pursue their own business and IT investment strategy.
The new cloud based infrastructure will deliver significant benefits for each financial institution, including fast access to new and innovative services that meet growing demand in Europe. The private cloud environment will enhance risk management, improve service delivery levels and reduce operating cost.
IBM will leverage its market and technological expertise, as well as research capabilities to transform the IT infrastructure of these institutions, gaining significant levels of efficiency and competitiveness.
