ING outsources to cut costs

ING Group has signed into a US$1.02 billion (800 million), five-year outsourcing deal, which will cover the installation and servicing of office equipment.
This deal is part of ING’s broad strategy to cut costs and represents the Company’s most recent outsourcing agreement.
ING has already signed two other outsourcing agreements this year. The other agreements include: a seven-year, 400 million agreement reached in May with Astron to outsource banking and insurance document processing, and a six-year, 200 million deal with LogicaCMG reached in April regarding the IT maintenance and testing of ING’s banking operations.
ING is utilizing outsourcing in order to cut costs during the Dutch markets current season of slow growth. The deal represents part of a wide plan announced last year to cut costs that ING. The goal of the initiative is to save an annual amount of 460 million, which includes 230 million savings in operations and IT outsourcing.
ING and four suppliers have signed a memorandum of understanding with regards to the installation and support of desktop and laptop computers, printers and telephones for all of ING’s banking and insurance operations across Holland and Belgium.
The final contract with the suppliers, including Accenture, Atos Origin, Getronics and KPN, is hoped to be finalized by the end of the year.
ING says it expects to transfer 490 full-time equivalent roles in the Netherlands to the suppliers in addition to transferring 60 Belgium-based positions. Approximately 2,200 full time positions are expected to be transferred to outsourcing suppliers.
In total the group is aiming to transfer around 2,200 full time equivalent roles to outsourcing suppliers.