ING U.S. Financial Services Signs Seven-Year IT Infrastructure Services Contract with IBM
ING U.S. Financial Services today signed a contract to deliver its information technology (IT) infrastructure service by IBM (NYSE: IBM). The agreement will significantly reduce ING’s IT costs and allow ING to leverage IBM’s expertise, in-depth capabilities, tools and processes, research and development investments, and scale. The services contract is approximately $600M over seven years.
Having IBM deliver IT infrastructure services will enable ING U.S. Financial Services to ensure that the ING technology infrastructure services are flexible and enable future company growth, while minimizing business risks.
"We believe outsourcing our information technology infrastructure is the best option to meet our current and future needs for continued competitiveness in the financial services industry. It will enable us to focus time and attention on customer facing activities,” said Paul Donovan, Chief Information Officer, ING U.S. Financial Services. "We conducted a thorough assessment of service providers and determined IBM was the best strategic partner to help us meet the needs of our unique blend of businesses and customers."
IBM will deliver on demand IT infrastructure services including data center services, network and voice services, and infrastructure help desk and desk side support. The agreement covers U.S. Financial Services infrastructure services delivery across the U.S.
"By leveraging IBM’s On Demand strategy," said Phil Guido, IBM Global Services General Manager for Financial Services Sector, "we believe ING will now have a more variable, resilient and scalable architecture providing them the flexibility to meet unpredictable market demands and the ability to focus on their core business needs."
Under the agreement, IBM will hire approximately 300 ING infrastructure employees. Starting today, ING will begin transitioning the infrastructure services to IBM. The two companies will share transition activities to ensure technology infrastructure continues to operate at the highest levels without causing disruption to ING customers. The transition period is scheduled to be completed by mid-April 2004.
ING Groep N.V. (NYSE: ING) is one of the largest financial services companies in the world and is a leading provider in global and U.S. markets. In the U.S., ING’s operations include ING U.S. Financial Services which is comprised of a variety of businesses offering a comprehensive array of products and services to retail and institutional clients – including retirement programs; annuities; life insurance; employee benefits; mutual funds; and financial planning.
About IBM Global Services
IBM Global Services is the world's largest information technology services and consulting provider, generating over $36 billion in 2002. Approximately 180,000 professionals serve customers in over 160 countries, providing the entire spectrum of customers' e-business needs - from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. IBM Global Services delivers integrated, flexible and resilient processes - across companies and through business partners -- that enable customers to maximize the opportunities of an on-demand business environment.
ING U.S. Financial Services