ING, Outsourcing, Deal, Cost
ING agrees $1 bln outsourcing deal
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Dutch financial-services firm ING Group said Tuesday it has agreed an 800 million-euro ($1.02 billion), five-year outsourcing deal covering the installation and servicing of office equipment as part of its wide-ranging cost-cutting plans.
The deal is the latest in a string of outsourcing agreements at ING, which, along with Dutch peers such as ABN Amro (ABN), is using outsourcing to cut costs amid slow growth in the Dutch market.
ING said it has signed a memorandum of understanding with four suppliers to cover the installation and support of desktop and laptop computers, printers and telephones for all its banking and insurance operations across Holland and Belgium.
The firm added it hopes to sign the final contract with the suppliers, which consist of Accenture (ACN), Atos Origin, Getronicsand KPN (KPN), by the end of the year.
The banking group said the deal is part of a wider cost-cutting plan announced last year, under which it hopes to generate annual savings of 460 million euros, including 230 million euros of savings from operations and IT outsourcing.
ING added it expects 490 full-time equivalent roles in the Netherlands to be transferred to the suppliers, with 60 positions in Belgium also being transferred.
In total the group is aiming to transfer around 2,200 full time equivalent roles to outsourcing suppliers.
The deal is the third outsourcing agreement to be signed by ING this year. In May it agreed a seven-year, 400 million-euro deal with Astron to outsource the processing of banking and insurance documents. And in April it agreed a six-year, 200 million-euro deal with LogicaCMGfor IT maintenance and testing related to ING's banking operations.
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