The long-term agreement is with Dexia and several major financial institutions in Europe to build and manage their IT infrastructure previously managed by Associated Dexia Technology Services (ADTS). And as a result of this agreement, IBM takes a controlling share in ADTS establishing an IBM company, renamed as Innovative Solutions for Finance (ISFF), with signed sourcing contracts at a total value of $1.3 billion over seven years.
With this agreement, IBM will implement a cloud infrastructure to expand ISFF services into new markets and optimize the efficiency of its existing information technology management. Associated Dexia Technology Services was founded in 2006 to deliver IT services to financial institutions formerly within the Dexia Group, such as Belfius Bank, Belfius Insurance and Banque Internationale à Luxembourg.
"Since 2006 Dexia has shouldered and encouraged the development of ADTS providing quality service for various entities formerly within the group," said Karel De Boeck, CEO of Dexia Group, in a statement. "After a long and careful selection process, Dexia has chosen a strong partner endorsing a new industrial future for the company and its employees. At the same time, this agreement is yet another significant step forward in the Group’s orderly resolution."
The agreement enables Dexia and the ISFF clients formerly within the Dexia Group to segregate themselves as customers and pursue their own business and IT investment strategies. IBM will leverage its market and technological expertise, as well as research capabilities to transform the IT infrastructure of these institutions, the company said.
IBM said the new cloud-based infrastructure will deliver benefits for each financial institution, including fast access to new and innovative services that meet growing demand in Europe. The private cloud environment will enhance risk management, improve service delivery levels and reduce operating cost.
"Our integrated transformational approach, the introduction of new and innovative technologies and solutions, like cloud and analytics and our expertise in the financial sector will enable these customers to differentiate themselves in an accelerated way versus their competitors in their respective markets," said Bart van den Daele, general manager of strategic outsourcing for IBM Europe, in a statement.
IBM has been building up its expertise in banking and financial services, and investing in delivering technology into emerging markets. Last month, IBM announced that the Abu Dhabi Department of Economic Development (ADDED) selected an IBM managed security services solution to ensure protection of its information systems infrastructure and customer data. Using predictive analytics technology, the solution will help anticipate and mitigate threats and any possible breaches.