The deal is said to mark a key step in Westpac's technology transformation programme as both firms aim to build on the gains of the original outsourcing agreement signed back in 2000.

Peter Campbell, General Manager for IBM Global Technology Services in Australia & New Zealand, said, "Today's announcement signals IBM's continued commitment to enabling Westpac to become a market leader in technology enablement over the next five years.  IBM's deep understanding of Westpac's business, coupled with our proven capability in delivering robust and flexible IT infrastructure solutions will enable the bank to maintain its focus on customers, people and productivity."

IBM will be responsible for the operation of the bank's key infrastructure services including services related to Westpac's new data center, mainframe, midrange, storage, desktop, print and security operations. 

Bob McKinnon, Group Executive, Technology, Westpac Group, added "Over the past two years, IBM and Westpac have worked closely together to improve system reliability and improve the customer experience.  This new contract will enable us to sustain and build on those joint successes as we continue to leverage IBM's expertise, technology and knowledge of Westpac."

The deal was signed in New York on November 19th with Westpac CEO Gail Kelly and IBM Chairman and CEO Samuel J Palmisano present.