Commonwealth Bank announces new service oriented relationships with EDS Australia and Optus

30 June 2006

The Commonwealth Bank today announced a significant shift to multi-source service relationships with the appointment of Optus to provide managed mobile voice services, and an extension of the mainframe and midrange component of the Information Technology & Telecommunications (IT&T) Agreement with EDS Australia. Both deals are the result of competitive reviews and significantly change the structure and nature of these types of relationships.

"The new arrangements will deliver more efficient operations, significant service improvements and cost savings across the enterprise," said Michael Harte, Commonwealth Bank CIO. This is a significant departure from our historic relationship structures and a new beginning aligned to the Bank’s new brand campaign "Every day is a new day".

The first announcement is the awarding of the Bank’s Managed Mobile Voice Services contract to Optus for the next three years, until 2009.

"Moving to a new supplier for the mobile service will provide a higher level of service for end users within the Bank, increased flexibility and associated accountability, with reduced overall costs to the Bank," said Mr Harte.

The Bank has also extended its IT&T Agreement with EDS Australia specifically for the provision of mainframe and midrange data processing services (collectively known as Enterprise Processing Services) for a period of six years to June 2012.

The Bank and EDS are committed to establishing a new service oriented relationship that will see both parties work towards delivering significant service improvements and specific expense reduction initiatives.

"The signing of this extension is a cornerstone in improving IT service delivery across the Bank," said Mr Harte.

"We have taken back the control through better governance and have set more meaningful business and customer service standards. We are making a meaningful departure from the old model. It will fundamentally change the nature of our relationship, stepping away from pure contract management to a joint relationship focused on a service oriented approach.

"We have learnt a great deal over the last eight years and this new commitment from both parties will change the spirit and nature of our arrangements.

"My focus is on developing technology and operational excellence across the Bank to support our vision to be Australia’s finest financial services organisation through excelling in customer service, said Mr Harte. "Every day is a new day and we now have a new customer focus where we can deliver technology excellence."

CBA is also investing in a state-of-the-art, green field data centre development in Sydney’s West. "This investment provides scope to grow, to adopt new best practices and deploy internal and external processing resources in an open and contestable manner," said Mr Harte. "Our systems infrastructure is highly distributed and we need to leverage opportunities in virtualisation to develop world class hosting and data services."

"The IT&T Agreement extension for EDS Australia and the new appointment of Optus are further steps in meeting our strategic objectives through our Enterprise IT execution approach."



For more information contact:

Bryan Fitzgerald
General Manager, Media & Issues Management
The Commonwealth Bank
Ph: (02) 9378 2663
Mob: 0414 789 649