Sparebank 1 loses patience with EDB ErgoGroup

EDB ErgoGroup looks set to pay a heavy price for recent payment system glitches, with one of its biggest clients, Sparebank 1, reviewing its relationship with the Nordic IT services group.

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Sparebank 1 loses patience with EDB ErgoGroup

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An EDB ErgoGroup technical problem over Easter affected around 200,000 transactions at ATMs and payment terminals in Norway.

This was just one in a series of outages, prompting Sparebank 1 to lose patience with its supplier, with which it has a contract until 2014 worth around NKr300 million a year.

This current deal will continue as planned but in a statement EDB ErgoGroup says opportunities for "supplementary sales" may be hit.

But, according to Computerworld, Sparebank 1 IT director Eivind Gjemdal says the service provided has been so bad that the partnership will terminated.

The Easter chaos and subsequent steps taken to strengthen systems is likely to hit EDB ErgoGroup Ebita for 2011 by around five per cent, warns the vendor.

"These measures will ensure that we leave no stone unturned in our commitment to improve our performance and successively strengthen our reputation as a supplier and long term cooperation with the banks," says Terje Mjøs, CEO, EDB ErgoGroup.

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