French bank BNP Paribas has signed a multi-year services deal with IBM worth up to E1bn, signalling the spread of outsourcing in continental Europe. BNP Paribas and IBM will set up a single purpose joint venture to transform the bank’s IT into an on-demand infrastructure. Both BNP Paribas and IBM will staff this new entity, which is expected to employ 450 people, to help BNP Paribas achieve additional performance improvements and cost savings. Hervé Gouëzel, CIO of BNP Paribas, said: “This long-term partnership ensures that our technical staff will remain with BNP Paribas. The new entity that we are setting up with IBM is already positioning itself as on-demand reference in the banking industry. It is scalable enough to sustain future growth and adapt to changes in the banking industry.”