So, the rumours are true. Earlier this year, we reported that Lloyds Banking Group was set to agree a £1.3 billion IT outsourcing contract with IBM which would see almost 2,000 jobs shift to Big Blue.

IBM has today confirmed the signing of a 10-year agreement with Lloyds Banking Group in the UK. It will provide dedicated private cloud offerings hosted in both Lloyds and IBM datacentres in the UK and will manage the application migration services to the new private cloud.

In a statement, IBM says: “With over 30 million customers the Group operates the UK’s largest digital bank with 12.5 million online customers and 8 million mobile users. This agreement will extend the Group’s existing cloud technology capabilities across the business and will enable the bank to further boost efficiencies while innovating new digital services for customers.”

It adds: “Rivalling the size and scope of some of IBM’s largest cloud agreements, the approximately £1.3 billion agreement reinforces the fact that transactions in today’s global digital economy are complicated and often exposed to errors, fraud and delays. This is why LBG turned to IBM to provide dedicated private cloud offerings to serve as a technology digital platform. LBG will now use the cloud for different applications such as websites for opening bank accounts or applications used by colleagues in branches hosted on the cloud. Lloyds is the latest example of how today’s financial services industry demands agility.”

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by Scott Thompson
Scott is Senior Editor at IBS Intelligence. You can follow him on Twitter and contact him at: Scott.Thompson@ibsintelligence.com
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