IBM to provide procurement outsourcing services for Korea Exchange Bank

IBM has won a five-year contract from foreign exchange bank Korea Exchange Bank (KEB) to provide a range of enterprise strategic sourcing and procurement services. Datamonitor estimates the contract to be worth approximately $50m.

IBM will run KEB's overall sourcing and procurement operations end-to-end, covering areas of IT, marketing, services, facilities and supplies. It will establish and support the bank's purchasing strategies, improve the purchasing process and systems, as well as manage strategic sourcing processes and relationship with suppliers. It will also make purchasing decisions and settle payments. Additionally, it will help the bank to reduce cost by centralizing its procurement process.

Hakdong Kang, business development executive of Managed Business Process Service at IBM Korea, said: "We are pleased to bring our collaboration with Korea Exchange Bank to a new level with the strategic outsourcing agreement. IBM's success in process outsourcing despite the unprecedented business environment in the last few years is partly attributed to the process innovation in a range of areas including enterprise purchasing, which helps drive cost saving and ensure industry compliance."

IBM's other recent deals in the banking sector include a six-year outsourcing contract extension in April from Japan-based Daishi Bank to manage the operation and maintenance of the bank's information system and the development and maintenance of the applications. It also won a C$450m ($372m) seven-year contract extension deal from Canada's National Bank Financial Group to manage its information technology infrastructure and a C$300m ($242m) from Canadian insurance giant Sun Life Financial to manage its IT operations in Canada and the United States.

http://www.datamonitor.com
Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall 
not be liable for errors or delays in the content, or for any actions 
taken in reliance thereon

Related terms: bank, business, canada, contract, environment, executive, foreign exchange, information technology, insurance, japan, korea, marketing