BT Signs Outsourcing Contract with Nationwide Building Society
30 June 2008
BT today announced a new agreement with Nationwide Building Society to manage its networked IT services in a seven year outsourcing deal worth £160 million. Under this new, business-aligned outsourcing service, Nationwide will transfer all voice and data networking infrastructure, third party network contracts and in-scope staff to BT.
As part of the contract, BT will deliver a service transformation programme under which they will consolidate Nationwide’s multiple networks onto its industry-leading 21CN Global network which will support both voice and data services on a single converged platform. BT will also deliver enhanced remote access facilities to Nationwide’s non-office based employees.
The new model will introduce a flexible commercial model providing Nationwide with cost predictability whilst based on industry best practice and a framework of service level agreements (SLAs) at a reduced overall total cost of ownership.
Traditionally, Nationwide has developed and managed its IT operations in-house and procured point solutions from external suppliers where necessary. This agreement marks a shift towards a preference for a multi-sourcing model for IT services that can provide Nationwide with a reduced overall service cost and with improved service flexibility.
Peter Stafford, Head of IT Infrastructure at Nationwide, said: “Nationwide’s growth in recent years has meant that our IT infrastructure has also had to evolve at an exponential rate to keep up with demand and we must now seek the most efficient and scalable infrastructure service possible to support this. Having worked with BT for a number of years, we are very confident in the team’s ability to fulfil our requirements.”
François Barrault, CEO, BT Global Services, said: “Our clients increasingly see BT as a trusted partner to operate the networked IT processes and assets which are not a core part of their business proposition. Nationwide chose BT for its ability to deliver a standardised, cost effective network infrastructure and a well-governed but innovation-led approach to future service management. In delivering this contract, BT will build on its unrivalled track record in providing transformational network centric outsourced solutions which meet the demands of the financial services industry.