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EDITIONS
Friday, 22 November, 2002, 11:49 GMT
ABN Amro transfers tech staff
ABN Amro building
ABN farms out its technology support function
Dutch investment bank ABN Amro has said it plans to transfer about 2,000 technology jobs to computer firm EDS as part of a $1.5bn outsourcing deal.

Under the agreement, which should be finalised by the end of the year, computer firm Electronic Data Systems (EDS) will take over part of the bank's information technology division.

EDS is expected to inherit about 2,000 of ABN Amro's technology staff, although the computer services giant has refused to comment until the negotiations are completed.

Many of the jobs affected are based in Amsterdam and London.

A further 500 ABN Amro jobs are expected to go through natural wastage.

Farmed out

The agreement, one of the banking sector's biggest ever outsourcing deals, is designed to shore up ABN Amro's finances in the face of tumbling stock markets and a dearth of lucrative investment banking businesses.

ABN Amro said the deal with EDS will start to generate cost savings from 2004.

The Dutch bank has already axed about 10,000 jobs in a radical restructuring exercise credited with boosting its profits for the July-to-September period.

ABN Amro shares climbed 5% when the EDS deal was announced late on Thursday, and were down 1.7% at 16.45 euros on Friday morning.

The EDS deal confirms a growing trend towards banking sector job cuts.

Analysts believe up to 35,000 investment banking jobs have been lost in the City of London financial district alone over the past 18 months.

See also:

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