CNN reports that around 2,000 ABN Amro IT staff are to be transferred to technology services firm Electronic Data Systems (EDS) as part of a $1.5bn IT outsourcing deal. Staff in London and Amsterdam, the main IT hubs, are thought most likely to be effected. The bank also confirmed that a further 500 investment banking staff will go through natural wastage.
The transaction, one of the largest IT outsourcing deals in the financial services industry, will result in EDS running a large part of the ABN's investment banking technology operations. The bank is likely to start capturing cost savings as a result of the deal from 2004.
The deal will be finalised towards the end of the year.