Bank of Ireland has replaced HP with IBM in a five-year infrastructure services deal.
The news follows the expiration of its current agreement with HP for the provision of IT infrastructure services. Following a competitive bid process with a number of parties, IBM was selected for exclusive contract negotiations in July this year.
HCL, the Indian outsourcer, lost out on the deal. A contract with IBM was confirmed after "due diligence and regulatory approval was granted", said IBM.
When HP took over the bank's IT in 2004, it made special payments to staff and guaranteed job security after negotiating with the bank's unions.
IBM will manage Bank of Ireland's entire IT infrastructure, including desktop systems, servers, mainframes, local area networks and the service desk. The value of the contract has not been disclosed. When HP signed its seven year deal with the bank, the contract was reportedly worth around $600m (£375 million).
“The signing of this contract marks the culmination of a lengthy process, during which Bank of Ireland assessed a number of potential service providers”, said Larry Kiernan, chief technology officer and head of group IT at Bank of Ireland.
“We have now agreed a group-wide solution for the provision of our IT infrastructure services and, under this agreement, we will have access to a wide range of innovative IT solutions." Kiernan said the bank was working with HP to "ensure a smooth transition to IBM”.
Bank of Ireland, which also has branches in the UK, is partly owned by the Irish government and received a €3.5 billion injection of state aid last February following major problems in with mortgage lending.