CBA strips $200m from IT
Kelly Mills
MARCH 30, 2006THE Commonwealth Bank will redirect up to $200 million from its technology spending to other areas of the bank as part of a new IT plan.
As part of the plan to cut costs, the bank will get tough on the use of consultants, put in place a preferred vendor list, instil a organisation-wide procurement process and get smarter in how it sources products and systems.
Its main outsourcing partner EDS will bare the brunt of this new strategy.
The $5 billion outsourcing contract is due to expire in the middle of 2007.
CBA chief executive officer Ralph Norris said in today’s Strategic Direction briefing that EDS had been a "very good organisation in regards to operating and managing large scale systems".
Mr Norris confirmed the bank was in the advanced stages of renegotiating the EDS contract, saying he expected a "satisfactory" result.
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