Under the terms of the agreement, around 350 IT staff based in The Netherlands will be transferred to LogicaCMG. The deal is part of an efficiency programme ING announced last November when it said it was cutting 500 IT jobs and outsourcing 2200 positions at its operations and IT division in Belgium and the Netherlands. ING says it expects total annual cost savings of approximately EUR230 million and non-recurring costs of about EUR180 million as a result of the entire restructuring initiative. So far ING has signed a memorandum of understanding (MoU) to transfer application development and maintenance and IT testing operations to LogicaCMG and says the final contract is expected to be signed this summer. Commenting on the deal, Paul Schuyt, chief executive of LogicaCMG in the Netherlands, says: "Through the conclusion of this contract with ING we will not only significantly strengthen our position in the important financial services market, but we will also further develop our outsourcing capabilities."