ING signs Memorandum of Understanding with LogicaCMG for outsourcing
Amsterdam, 26 April 2006, Today ING announced that it has signed a Memorandum of Understanding with IT services provider LogicaCMG for outsourcing activities in the field of application development, IT maintenance and testing of IT systems mainly relating to ING’s banking operations. The number of employees that will be affected amounts to approximately 350 all of which in the Netherlands.
The intended transaction is part of ING’s efficiency programme for the Operations & IT organisation in the Benelux that was announced on 2 November 2005, resulting in a total of about 2,200 FTE’s being transferred to outsourcing partners. The goal of the programme is to improve efficiency and to lift ING’s banking operations to a higher level of operational excellence. ING expects total annual cost savings of approximately EUR 230 million and non-recurring costs of about EUR 180 million as a result of the entire efficiency programme (outsourcing, streamlining and downsizing of external staff).
The final contract with LogicaCMG is expected to be signed this summer, representing the first large outsourcing contract as a result of the efficiency programme announced last November. The value of the contract is expected to be over EUR 200 million based on a six-year period.
ING attaches great importance to carefully managing the interests of employees affected by outsourcing. In this context, ING recently reached an agreement with the Dutch labour unions regarding a Social Framework Sourcing in which the job security of affected employees is laid down. The labour conditions agreed with LogicaCMG in the MoU are in line with this Social Framework.
The transaction is pending advice from the Works Councils and negotiations with the labour unions about employment conditions. The intention is that all affected employees will be transferred to LogicaCMG.
ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in over 50 countries. With a diverse workforce of about 114.000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand.
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