Headlines:
IBM Signs 12-Year Contract with Fiserv
International Business Machines Corp. has signed a $38 million, 12-year agreement to provide technology services to the Brookfield, Wis., banking outsourcing provider Fiserv Inc.
The Armonk, N.Y., technology giant said last week that it had already begun providing networking and desktop computing systems, application development, and management services for a Fiserv check processing project in Australia. As check volume falls, many banks are working together to consolidate their processing operations.
Fiserv announced in February that it would provide item processing services to Vipro Pty. Ltd., a consortium of three of Australia's largest banks. The contract is expected to generate revenue of $460 million a year for Fiserv.
"We believed it was important to leverage IBM's existing infrastructure rather than create something from scratch," Ken True, the chief executive of Fiserv Solutions of Australia, said in IBM's press release.
Fiserv has a similar arrangement with a Canadian check processing consortium, Intria Items Inc., which dates to 1996.
Digital Insight and Metavante Renew
Digital Insight Corp. of Calabasas, Calif., has renewed an agreement to offer its banking customers electronic bill payment software from Metavante Corp., a unit of Marshall & Ilsley Corp.
The deal has been extended through 2010, and the companies will also develop ways to make their products work together more efficiently, Digital Insight said last week.
Its bank and credit union customers can choose to offer bill payment services using software from both Metavante and CheckFree Corp.
