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TSB outsourcing entire banking IT to IBM

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18cc
18cc Posts: 2,120 Forumite
in Budgeting & bank accounts
at a cost of 1 billion....

"TSB parent, Spain's Banco Sabadell, has signed a €1bn group deal with IBM to build and run its entire banking infrastructure via a private cloud among a raft of other services – the outage-hit UK arm has told The Register.

The decade-long agreement will provide a much needed shot in the arm for Big Blue's hard pressed Global Technology Services (GST), and is designed to shore up TSB online banking services.

The head of comms at TSB, Supreet Thomas told us the contract means "IBM will be the main provider around technology services and our cloud strategy", and confirmed the nine-figure valuation penned by Sabadell.

She was unable to confirm the cost element for TSB, but estimated it at millions of pounds."
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Comments

  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    I guess the '1bn' is the lifetime value of the con trick tract
    .....under construction.... COVID is a [discontinued] scam
  • born_again
    born_again Posts: 20,276 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Will take them most of the 10 years to get it up and running. Unless they already have done it for another bank.
    Life in the slow lane
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    born_again wrote: »
    Unless they already have done it for another bank.
    https://www.finextra.com/newsarticle/34713/ibm-launches-financial-services-ready-public-cloud-with-bank-of-america

    Still a formidable undertaking.
  • GTR_King
    GTR_King Posts: 1,978 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    Dose that mean new Online Banking Design New PDF Statements etc?? hopefully won't be as bad as last time they switched online banking or I probably will leave TSB For good
  • Uxb1
    Uxb1 Posts: 732 Forumite
    500 Posts Third Anniversary Name Dropper
    Well it was IBM who were brought in during the TSB banking meltdown chaos in 2018 to emergency-fix the mess created by Sabadell for the TSB "upgrade" and make it sort-of work properly.

    So IBM already have an idea of how bad it was
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    IBM already provide banking solutions to over 40 out of the world's top 50 banks. You could almost say off the shelf.
  • born_again
    born_again Posts: 20,276 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Thrugelmir wrote: »
    IBM already provide banking solutions to over 40 out of the world's top 50 banks. You could almost say off the shelf.

    They might, but each banks works in it's own way with it's own systems.

    So you just pull a system off the shelf and expect it to work with a new banks data without a hell of a lot of testing...

    TSB have already been here once. So will be even more careful now.
    Life in the slow lane
  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Interesting news.

    The move to outsource IT is one thing. Moving onto the IBM cloud could make them very dependent on them if the required thinking, to get them away from this, hasn't been done.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    born_again wrote: »
    They might, but each banks works in it's own way with it's own systems.

    Banking is primarily in nature universal. The core engine of the system will be the same.
  • realaledrinker
    realaledrinker Posts: 1,661 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
    This relates to the infrastructure powering the banking system. If the latter stays the same - and I wager it will - then you'll get a more robust system still prone to many of the same functionality issues.

    .. spoken from experience

    .. Co-**
    Ethical moneysaver
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