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By Felicity Ussher, 19 August 1999 00:25

NEWS Barclays Bank is planning to use a single IT system to manage all its operations, covering everything from high-street branches to ATMs and call centres. The bank currently has twelve IT divisions, covering areas such as retail, global investment and US infrastructure. "Each one currently has its own IT infrastructure," an internal IT consultant told Silicon.com, "but the major ones are being brought together". The project is still in its early stages, and while duplication between divisions has been identified, it has not yet removed. "We're likely to build the single system from bits we've already got," the consultant continued, "but outsourcing has not been ruled out." The system secures the jobs of Barclays' developers for at least another year, at a time of upheaval for other divisions. One-third of the systems operations staff face redundancy, following the company's restructuring announcement on 20 May. Barclays' drastic decision to centralise IT management is an attempt to cut costs, according to an internal memo circulated this month by new chairman, Sir Peter Middleton. "There is a case for change... our IT costs are significantly higher than our competitors... they do not give enough value to customers," the memo states, entitled 'Update on the Management of IT'. A recent internal report, conducted by advisors to the Board, found that Barclays' IT spending is more than double its rivals in the financial sector.