Fubon Bank (Hong Kong) Limited has extended its outsourcing agreement with EDS for another five years to further support the enhancement of bank services in Hong Kong.

EDS has been the outsourcing partner of Fubon Bank since March 1989. This second renewal is significant in the perspective that it moves the outsourcing agreement to a more proactive, flexible and scalable platform. Specifically, implementing a strong IT governance model that will allow for better alignment of the IT strategy with the bank’s business requirements.

The five-year extension is worth $34 million and the contract will run through 2011, EDS said in a statement.

Under the original agreement signed in 1989, EDS has been providing outsourcing services to Fubon Bank, which includes application services, data center, field support and helpdesk, to system administration and network management.

The new contract will bring cost improvements through selected best shoring of applications development, security enhancement, technology planning and desktop support as well as server consolidation.