According to a report in today’s Australian, Westpac Bank has confirmed that its technology costs have blown out by more than $70 million.
According to a report in today’s Australian, Westpac Bank has confirmed that its technology costs have blown out by more than $70 million. Meanwhile the bank continues to deny current rumours suggesting it plans to outsource 3000 back office jobs offshore – most likely to India.
Delivering the bank’s results for the half year to March 31, 2008, Westpac CEO Gail Kelly revealed the new anti-money laundering legislation drove Westpac’s compliance costs up by $10 million dollars to $26 million compared with the half year to March 31 2007.
The CEO also revealed that capitalised software balances increased by $63 million to $548 million, driven by a $16 million increase in capitalised costs relating to Westpac’s FX system replacement project. Technology and information services purchased during the half were $77 million, up four percent on the previous year’s results.
When questioned on the bank’s alleged plans to outsource back office roles, Ms Kelly denied the reports.