UniCredit-owned Ukrainian bank PJSC Ukrsotsbank has signed a 10-year, $200 million IT systems and processes outsourcing contract with IBM.
Under the deal, IBM will assume responsibility for the development and support of PJSC Ukrsotsbank's information systems and applications as well as the management of the bank's IT infrastructure.
Big Blue takes over the management and maintenance of PJSC Ukrsotsbank's application portfolio, data centre systems, IT network, ATMs, end-user and deskside support.
The move will help the bank make significant operational savings, improve customer service, increase performance efficiency and lower operational risk across a country-wide network of nearly 400 branches, says the vendor.
The deal follows PJSC Ukrsotsbank's recent migration to a new core banking system and UniCredit hopes that this, coupled with performance improvements derived from the IBM collaboration, will offer a model it can export to other parts of the business.
Francesco Pusateri, head, global banking services, UniCredit, says: "Having already successfully migrated and centralised PJSC Ukrsotsbank's core banking systems, this decision will help us to strengthen our leadership in the Ukrainian banking sector. Leveraging IBM's technology assets and industry experience we are able to transform the way we work and run our operations."
Joseph Benaroya, VP, IBM global technology services, adds: "This is the first instance of full outsourcing in the region and marks a new era in the IT delivery model and in the development of Ukraine's financial services sector. Banks across growth markets are currently under enormous pressure to reduce costs and operational complexities while at the same time improve the customer experience."