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This story was printed from silicon.com, located at http://www.silicon.com/

Story URL: http://www.silicon.com/research/specialreports/enterprise/0,3800003425,39125033,00.htm

Lloyds TSB agrees IBM outsourcing deal
But handover delayed by "contract wrangles"...

By Andy McCue

Published: Friday 15 October 2004

Lloyds TSB is to outsource its voice and data networks to IBM, but the handover has been delayed after "contract wrangling" between the bank and existing supplier BT.

Around 80 Lloyds TSB staff from various sites around the UK will transfer under TUPE regulations to IBM.

Lloyds TSB first told staff of the plans to shift from a mix of in-house and third-party suppliers back in April, saying the aim was to replace the existing multiple voice and data networks with a single one.

IBM won the deal after fending off competition from BT, which provides some of the existing services.

While staff transfer talks have gone relatively smoothly however, the contract negotiations haven't and the target handover date of 1 October has already been missed.

The independent Lloyds TSB Group Union said the delays were due to "contract wrangling between BT and the bank" which have still not been resolved. Another source silicon.com spoke with confirmed details of the dispute.

Financial services union Unifi claims a new handover date of 1 November has now been set. No value has been put on the deal.

Lloyds TSB declined to comment and IBM failed to return requests for comment.

The deal will also fuel further speculation about the rumoured talks between Lloyds TSB and IBM over a £1bn deal to outsource the bank's entire IT operations, which surfaced earlier this year.