Gruppo Monte Paschi Siena Hires IBM to Enhance Operational Consortium

By Niladri Sekhar Nath

TMCnet Contributing Editor

 

Gruppo Monte Paschi Siena has reportedly entered into a 260 million in Euro, IT Services agreement with IBM (News - Alert) to cut costs and enhance efficiencies for the Italian bank's Operational Consortium.

 

The new agreement complements an existing 420 million Euro contract signed in 2003. With this contract, the bank is expected to bring approximately 48 million Euro in cost savings over the new six year term.

 

The bank has renewed its contract with IBM with the intention of accomplishing new projects related to their company strategy. The new contract goes a step further from the provision of IT services to also include a broader services relationship.

 

Thanks to the agreement, Monte Paschi Siena Group will be able to provide a more flexible and dynamic service to its customers. IBM will help Monte Paschi Siena Group align work volume and IT expenses, as well as manage process peaks and spontaneous requirements, through an advanced, flexible IT architecture and services. With this, the bank will be able to rationalize some of its core processes, improving operational effectiveness and efficiency.

 

As per the agreement, IBM will also develop for Gruppo Monte Paschi Siena, a "test factory" like Application Portfolio Management technologies for the monitoring and management of the bank's application portfolio. The technology will ensure development of the bank's Operational Consortium application through a continuous technical, functional and value alignment for the business.