Ness Technologies Inc (NSTC)

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FIBI outsources IT service to EDS, Ness for NIS 570m

The First International Bank of Israel expects to save NIS 208 million on what is Israel’s largest outsourcing transaction.

Ofer Levi 31 Oct 05 11:43

First International Bank of Israel (TASE: FTIN1;FTIN5) announced at the end of last week that it had completed Israel’s largest outsourcing deal. The bank will outsource its central, departmental, and personal computer activity and its communications equipment procurement to Electronic Data Systems (EDS) Israel and Ness Technologies (Nasdaq: NSTC) in an eight-year NIS 570 million project ($120 million including VAT).
EDS Israel will be chief contractor in the project, and will have two thirds of the tender, amounting to $80 million. EDS Israel and Ness overcame IBM Israel and Matrix IT (TASE: MTRX) in the tender. The contract is expected to increase EDS Israel’s revenue by 15% in 2006.

First International Bank said that outsourcing would save an average of NIS 26 million a year, making a total of NIS 208 over the period of the contract.

When the project begins, 100 employees of MATAF (First International Bank's IT subsidiary) will transfer to EDS Israel.

First International Bank is the first Israeli bank to outsource its computer activity. If the measure is successful, other Israeli banks are expected to transfer some of their computer activity to external suppliers.

Published by Globes [online] - www.globes.co.il - on October 31, 2005

http://www.globes.co.il/serveen/globes/docview.asp?did=1000023757&fid=942

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