BANGALORE: LogicaCMG and ING today announce the signing of a Memorandum of Understanding (MoU) for outsourcing activities in the field of application development, application maintenance and testing of IT systems mainly relating to ING's banking operations.

The agreement is expected to have a value of over €200 million based on a six-year period. Approximately 350 ING employees based in the Netherlands will join LogicaCMG. The final contract with ING is expected to be signed this summer.

Outsourcing of these activities is part of the efficiency programme of ING's Operations and IT organisation. This agreement is the first in a series of several planned outsourcing programmes ING Operations and IT announced in 2005.

The works council of ING as well as the labour unions have been informed. The transaction is pending advice from the works councils and negotiations with the labour unions about employment conditions. The intention is that all affected employees will be transferred to LogicaCMG.

The ING employees who will join LogicaCMG as part of this agreement will continue to work for ING as well as other LogicaCMG financial services customers. LogicaCMG will also be able to offer these employees a number of career opportunities across other sectors in which the company operates.

Paul Schuyt, chief executive of LogicaCMG in the Netherlands said: “Through the conclusion of this contract with ING we will not only significantly strengthen our position in the important financial services market, but we will also further develop our outsourcing capabilities. We are looking forward to welcoming the ING employees to LogicaCMG. LogicaCMG will be working closely with ING to ensure the smooth transition of these employees.”