Westpac cuts Digital's contract

Westpac cuts Digital's contract

A six-year information systems maintenance deal between Westpac and Digital is to end on October 31 after the two parties failed to agree on financial terms for a renewed deal.

Westpac has awarded IBM Global Services Australia "preferred tenderer" status to take over the maintenance work, believed to be worth around $20 million a year, from November 1.

However, Westpac executives, includ-ing the bank's manager, information tech-nology contracts, Lyn Penney, declined to comment on the deal.

Three proposals

It is believed Digital submitted three proposals for a restructured deal and officials insisted the company had exceeded agreed targets nominated in the contract by significant margins.

Digital and Westpac recently negotiated an extension to a two-year contract which extended the vendor's role until October 31. Westpac and Digital executives signed the original four-year contract in 1992.

None of the parties involved were willing to discuss the specifics of the maintenance task.

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