Two big technology deals that were aggressively pursued by some of the biggest outsourcing firms have been scratched.
MasterCard International will keep all data processing and communications operations in-house "to keep control of our own operations," said Philip P. Verdi, executive vice president for electronic services.
At one point, MasterCard projected cost savings of $20 million over five years through outsourcing. Now Mr. Verdi says: "We're looking at $50 million over seven years" by keeping operations in-house.
MasterCard had been negotiating with International Business Machines Corp., Digital Equipment Corp., and American Telephone and Telegraph.
It recently appointed AT&T its primary vendor for telecommunications, noting that the key to in-house savings is shrinking the number of suppliers and renegotiating deals.
Chase Manhattan Corp., which has gone back and forth on outsourcing, also is keeping things in-house, sources said.
The bank had briefly reopened negotiations with IBM on software development operations, the sources said. The computer giant struck out several months ago on a deal to run Chase's data centers.
The sources said the bank is still considering a partnership with IBM on some retail banking applications.
