The value of the deal has not been disclosed, but Westpac’s initial $US2.3 billion deal with IBM was for 10 years, inked in 2000. The renewel spans a five year period, with two on0year renewel options.

Under the deal, IBM will be responsible for the banking corporation’s key IT infrastructure services, including network data centre services, mainframe, midrange, storage, desktop, workplace print and security operations.

Gilbert + Tobin worked with a team of Westpac executives and advisers on the procurement process and negotiations. It advised on the implementation oa new pricing model, a new governance model, and the re-articulation of service scope based on ITIL.

The transaction further bolsters Gilbert + Tobin’s credentials in transformational and technology-rich transactions and IT outsourcing.

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The team advising on the deal included partners Sheila McGregor and Tim Gole and lawyers Sam O’Brien, Anthea Collins, Andrew Hii and Simon Burns.

Gilbert + Tobin is one of Westpac’s primary legal advisers, and advised the bank on its A$47 billion acquisition of St.George Bank.

Westpac’s group executive technology Bob McKinnon said: “I’m proud to say that our relationship with IBM has come a long way over the past couple of years and we’ve made significant inroads to improve the reliability of our systems.

“In parallel, we’ve jointly approached commercial negotiations in the right spirit, collectively shaping this new IT services contract which will drive a very different relationship and set us up for the future – aligning our companies to a shared vision, strategy and values.

“Importantly, we have been able to retain IBM’s extensive expertise and knowledge of the organisation, while also driving flexibility on key aspects of our partnership. This new relationship will support the significant IT investment programme underway within The Westpac Group to improve our customer touch-points and support our multi-brand model.”