News

TD Bank outsources ATM network to HP Canada

August 12, 2004

TORONTO - Hewlett-Packard Canada has won a $420 million (U.S. $318.5 million) outsourcing contract to upgrade and manage TD Bank's network of ATMs and its ATM and point-of-sale transaction processing systems.

HP Canada will upgrade about 2,400 ATMs across Canada under the seven year agreement.

According to TD, the new machines, provided by the Diebold Company of Canada Limited, will include audio capability and improved accessibility for wheelchair users. Diebold will also provide first- and second-line maintenance services.

TD said the deal "will produce significant business advantages, such as a shift from fixed to variable costs, capital avoidance, operating cost and risk reductions, increased efficiency and productivity."

About 50 TD Bank jobs will be transferred to HP Canada under the outsourcing deal.

Last year, HP signed a $2 billion, seven-year contract with CIBC to manage the bank's IT services. HP also acquired CIBC's 51 percent interest in the four-year-old Intria-HP joint venture on outsourcing, for an undisclosed amount.

Under the TD Bank contract, HP will be responsible for service desk, integrated management and communications, data center operations and other services. HP's  ProLiant server technology and NonStop NSK switch hardware and software will support this mission-critical application. In addition to Diebold, other partners include: ACI Worldwide, providing core switching solution (BASE24), application development and maintenance services; Phoenix Interactive Design, providing ATM application software/middleware and application development services; and Intria Items, providing business process outsourcing (BPO), including cash management and forecasting services.

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