Butterfield Bank Group is set to outsource some of its information technology operations to EDS and could axe a number of IT posts at the bank.

A spokesman for the bank said that as a result of the transfer of responsibility for certain IT functions and processes to the global technology provider, there may be a cut in the number of IT roles needed in Bermuda at the Group's offices abroad.

The bank anticipates it will be able to cope with the loss of any IT posts through attrition and reassignment of staff to other parts of the business.

This follows the bank's decision to write down $29.2 million in previously capitalised investments in technology in the third quarter, including investments supporting planned changes to its banking systems used on the Island. Those plans have been replaced by plans agreed with EDS to develop a core banking platform across the Group's jurisdictions.

The spokesman said: "Management of the Butterfield Bank Group technology function will continue to reside in Bermuda and there will continue to be a need for skilled information technology professionals within the Group.

"As a result of the transfer of responsibility for certain information technology functions and processes to EDS, over time there may be a reduction in the overall number of IT positions required in Bermuda and at Group offices overseas.

"We anticipate that we will be able to accommodate any necessary changes in the scope and structure of the IT function through natural attrition and redeployment of personnel to other areas within the bank.

"Butterfield Bank will endeavour to offer employment continuity to impacted staff members wherever possible and is committed to treating all employees fairly and with respect."

EDS will provide the bank's international operations with technology infrastructure management, application development and technical support.

Wilton Dolloff, executive vice-president and chief operating officer at Butterfield Bank, said: "Butterfield selected EDS as a third-party provider of information technology services for the group following an extensive due diligence process that confirmed they are the right firm with which to partner for our current and future technology needs.

"EDS has an excellent reputation for managing technology infrastructure and providing application development and support to international financial services companies. We are pleased to be working with them."

Mark DeBenedictus, vice-president of financial services at EDS, said: "Success in today's global financial market requires more than just banking knowledge, it requires advanced IT to optimise operations, improve productivity and deliver top-notch services to customers. "As Butterfield's trusted business ally, the EDS team will deliver IT services with the flexibility and scalability to support the bank's growth plans and enhance Butterfield customers' overall experience."

EDS Agility Alliance partner Oracle, via its Oracle Financial Services, will provide the bank's core banking system, which EDS will implement.

Mr. Dolloff said: "With EDS as our technology partner, Butterfield can now begin the process of transitioning all of our business applications and international legacy systems to a new, common platform that will be centrally managed.

"This should enable the bank to realise significant efficiencies and enhance our operating capabilities going forward for the benefit of all of our stakeholders."

EDS provides a wide portfolio of business and technology solutions for clients worldwide to improve their business performance, according to its website. Its core portfolio comprises information-technology, applications and business process services, as well as information-technology transformation services.

It has bases worldwide and carries out work outsourced to it across a range of industries, companies and countries, managing contact centre services in 48 languages to more than 450 clients in 26 countries through its business process outsourcing service.

Management and co-ordination of international IT functions for Butterfield Group will continue to be carried out from its head office in Bermuda.