Wednesday, September 15, 1999 Published at 17:34 GMT 18:34 UK
Business: The Company File
Barclays signs Dell deal
Barclays is buying a tailor-made IT service from Dell Computers
Barclays has signed a £50m ($80m) deal with Dell Computers the bank says will give it a cutting-edge service to personal computer users throughout its business.
The three-year deal with Dell - the world's second-largest supplier of PCs - will give Barclays a "total managed global IT service" through which it can improve productivity and reduce costs.
"By moving to a partnership model, we will be able to move at the Internet speed that our business now demands," said David Weymouth, managing director of Barclays Service Provision.
"This deal helps us to move Barclays towards a position as technology leader in the UK banking industry."
Mr Weymouth did not specify the savings that Barclays, one of the four main UK retail banks, would get from the "one-stop shop" IT contract, but he said they would be "significant".
On the up
Barclays has recovered from a gloomy period last year and embarked on a major drive to contain costs. Its shares have outperformed the UK banking sector by 22% this year.
Dell will provide Barclays with all its PC servers, desktops, workstations, notebooks and associated PC accessories and services.
Dell chairman and chief executive, Michael Dell, said the deal illustrated the advantages of its unique direct business model.
As the single service supplier, Dell would partner "best of breed" industry suppliers to deliver any additional services required by Barclays.
Dell said services were becoming a significant part of its business and brought in about $2bn of its $27bn (£17bn) total revenues in the past year.
Mr Weymouth said the new systems could lead to some job cuts, but that these had already been included in the 6,000 jobs Barclays is shedding in its retail banking operations this year as part of the cost drive.
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