New ABN Amro owners will set out IT plans in mid-December

ABN Amro will announce details of its new owners’ strategic plans “in a couple of weeks’ time” when delivers an update to the Dutch financial regulator on its takeover. It is expected that a major change in business model could have significant implications for the firm’s large IT infrastructure and its outsourcing arrangements.

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ABN Amro will announce details of its new owners’ strategic plans in mid-December when it delivers an update to the Dutch financial regulator on its takeover.

Analyst have warned that a major change in the bank's business model could have significant implications for its IT operations and outsourcing arrangements.

The bank is understood to have held extensive discussions on a three way split between new owners the Royal Bank of Scotland, Santander and Fortis. At £48bn, the takeover that was confirmed last month was the largest in European banking history.

At stake when ABN Amro sets out its plans will be a £1.2bn multi-supplier infrastructure and application development outsourcing deal the bank has with IBM, Infosys, Accenture, Tata Consultancy Services and Patni, plusa £640m desktop outsourcing deal with EDS which reaches the end of its term in February.

Sean Pepper, executive director and global head of commercial vendor management at ABN Amro, told Computerworld UK that the bank was well-advanced in formulating its new IT strategy but the detail would have to wait for a regulatory announcement.

“Our three new stakeholders decide our business strategy,” he said. “In a couple of weeks’ time there will be a submission to [regulator] the DNB [Dutch Central Bank] involving the business models.”

Pepper would not comment on whether the outsourcing deals would be renewed, cancelled or restructured, but said all the bank's suppliers had "played a really important role in the discussions that have taken place.”

In October, analysts said they expected the three-way division of the bank following takeover to simplify decisions on IT strategy, since each new owner would be able to make its own plans for the units it acquired rather than trying to find a common system that fits with all the parties involved.

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