Abbey data centres transferred to EDS

The contract will see 1,500 Abbey National staff from data centres across the UK move under the control of the EDS managed project.

The venture will service Abbey National's existing two million mortgage customers, as well covering plans to expand the service into the biggest mortgage operation in Europe. Abbey National says it will save $130m with the contract, and be able to cut further costs by focusing on its core business.

EDS, one of the world's largest outsourcing firms, has been criticised in the past for poor management of complex IT projects which go over budget. Last year silicon.com revealed the UK Inland Revenue had resorted to penalising EDS 100 times in the five years of its controversial contract with them.