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December 14, 2006

ING signs $990m desktop outsourcing deals

Financial services company ING Groep NV has signed seven-year deals worth a total of 750m euros ($990m) with four outsourcing vendors for the provision of desktop IT and communication services.

By CBR Staff Writer

Under the terms of the contracts, first announced in July, Accenture, Atos Origin, Getronics, and telecoms operator KPN, will provide a range of services including installation, maintenance, and support of desktops, printers and telephones. The agreements cover approximately 53,000 ING employees across Europe and will involve the transfer of 430 ING employees in the Netherlands and Belgium to Atos Origin, Getronics, and KPN.

The bulk of the work on the project will be done by Atos Origin, Getronics, and KPN, with Accenture’s role described as that of an integrator, coordinating the scope of the services to be delivered and managing the supplier contracts on behalf of ING. Consequently, Accenture’s share of the contract value is only 52m euros ($68.6m).

KPN has secured the largest of the four deals. The company will provide fixed and mobile communication, call center, LAN, and conferencing services to all ING’s staff in the Netherlands and Belgium, under a deal worth 269m euros ($355m).

Paris, France-based Atos Origin’s share of the project was valued at 216m euros ($285.1m). The company will manage ING’s email systems as well as providing server management services and application design, support, and management services.

Getronics will administer helpdesk services, manage onsite support and provide desktop hardware purchasing. The value of Getronics’ contract is 213m euros ($281m), with the company also receiving additional revenue of 21m euros ($27.7m) from subcontracted services with the other suppliers.

The deal forms another part of ING’s major overhaul of its back-office administration process. Over the last month, the financial services giant has completed deals worth a total of 550m euros ($725.7m) with Astron Group, for document processing services, and LogicaCMG, for application development. In total, ING plans to cut 500 jobs from its 13,000-strong operations and IT division in the Benelux countries, and outsource a further 2,200 staff to third-party suppliers.

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