Leeds Building Society (LBS) has penned a ten-year contract with HP to host its core IT systems as part of the supplier's recently launched Shared Services Alliance.
HP announced the Alliance in partnership with Yorkshire Building Society in August, where it will provide outsourced services to financial sector customers.
The Alliance offers core application hosting for banks and building societies, as well as services that include mobile application development and business intelligence. HP said that it already has a number of clients on running on the platform following the launch.
As part of the shared services deal Leeds, the UK’s fifth largest building society with assets of £10.8 billion and 700,000 customers, will migrate its Libra software platform onto HP’s virtual cloud based in its Wynward data centre.
Leeds had previously used Yorkshire’s IT provider arm, Yorkshire Key Services (YKS), to host the Libra system, which provides a number of functions to support the day-to-day running of its savings and loans operations. As part of the migration process, which is due to be complete in 2014, smaller systems such as its wholesale trading system will continue to be operated in-house.
The first phase of the project will not involve any new services being added to Leeds' systems. However by moving away from YKS’s legacy infrsatucture and onto HP’s cloud, Leeds hopes to be able to modernise its customer-facing services, such as developing mobile applications.
According to Leeds' executive director Karen Wint, the new outsourcing deal will enable the company to "rapidly develop" new technolgies to meet the demands of its customers.
“In order to be able to develop multiple applications and different technologies which our current customers are starting to demand - and new customers will want to access - the amount of cost I would have to put into this business if I did it myself would be significant,” Wint said.
“The shared service allows me to access technology that is already developed, or can be put into the platform, so you get access, as a small scale player, to technology and services that have been spread out cost-wise.”
Financial details of the deal were not disclosed.