JP Morgan is canning a $5bn, seven-year outsourcing agreement with IBM. IBM won the contract ahead of EDS and CSC, taking responsibility for the investment bank's data centres, desktop support and network services.
The deal was signed 30 December 2002 and was hailed by Eric Ray, vice president for financial services at IBM, as "the largest computer services deal in the financial services sector".
Four thousand JP Morgan staff moved to IBM: they are all returning to the bank, beginning January 2005.
JP Morgan recently merged with Bank One and, following a review, decided it now has enough capacity in-house to manage its own technology.
Austin Adams, CIO at JP Morgan Chase, said: "We believe managing our own technology infrastructure is best for the long-term growth and success of our company as well as our shareholders. Our new capabilities will give us competitive advantages, accelerate innovation, and enable us to become more streamlined and efficient." Adams said the bank would continue to work with IBM in some areas. ®