The BoQ -- the second-largest Queensland-based financial institution -- said the existing deal, signed only three years ago, would now conclude in 2014. EDS is expected to reap an additional AU$140 million in revenues on top of AU$480 million from the initial contract.
BoQ managing director David Liddy said the two-year extension would "continue" the AU$100 million-plus in prospective cost savings the institution expects over the life of the initial deal. This is likely to see savings from the extended arrangement reach around AU$120 million.
"The extension ... gives the bank ongoing certainty and supports long-term planning processes," Liddy said.
The BoQ said EDS had already completed a transformation of its core legacy systems and business processes, a move the bank's chief operations officer, Jennifer Heffernan, said had given management "a much improved line of sight of our costs, service changes and customers than before".
The BoQ plans to build in coming years on an aggressive interstate expansion program that has already seen its branch network in Queensland, NSW and Victoria increase from 92 to 163 in less than three years. Liddy said EDS' support would help underpin the BoQ's plan to open 100 interstate branches by August next year.
EDS is managing all BoQ IT infrastructure, applications and business process services, as well as fulfilment of customer and sales service requests across consumer and business banking.