Banking and insurance conglomerate ING Group has finalized contracts worth €750 million (£503m) with a consortium of companies to provide workspace services for its 53,000 employees in Europe.
The contracts with Royal KPN, Getronics, Atos Origin and Accenture are each for seven years and cover the installation, maintenance and support of desktop PCs, laptops, printers and telephones, the companies said Thursday.
It's the biggest of three outsourcing deals the Dutch banking group has finalised recently, worth a combined total of €1.3 billion (£872 million). They are part of a cost-cutting programme announced last November that is designed to save the company €460m per year, including €230m from operations and IT.
The program will see 950 workers laid off, while 2,200 employees will be transferred to work at the various outsourcing providers, said ING spokesman Nanne Bos.
He characterised the latest deal as a "third generation" outsourcing project, designed to provide ING with more flexibility with its suppliers.
First-generation deals involved outsourcing work to a single provider. Second-generation deals split the work among several providers, but still with one provider playing an important lead role. In this latest deal, no single provider controls a defining part of the contract, making it easier for ING to replace any of them if it is not happy with their work, Bos said.
The contracts were also structured to give the providers an incentive to work well together, by levying penalties and awarding bonuses on the basis of how they perform as a group.