Fujitsu Services - one of Europe's leading providers of managed services for IT infrastructure - has clinched a new £170 million five year contract with Lloyds TSB.

Under the deal, Fujitsu will manage all desktop technology across Lloyds TSB's UK operations, helping the group make further improvements to its customer service.

Fujitsu, which has its headquarters in London, will provide desktop support to over 70,000 users including all customer-facing staff in nearly 2,000 Lloyds TSB branches and over 200 other offices.

By handing the management of over 80,000 devices, including PCs, laptops and associated servers, to one supplier, Lloyds TSB will embark on a range of cost and time saving efficiencies, which are designed to ultimately improve the service delivered to the bank's customers.

Fujitsu will provide an endtoend service for Lloyds TSB which will include IT support, helpdesks and maintenance, tailored to meet the specific needs of the Group's different business operations.

Fujitsu will also take responsibility for hardware supply, configuration and installation. The company says this will be a new and different approach for Lloyds TSB, with Fujitsu working through three stages of service evolution to ultimately transform the way in which Lloyds TSB reaches its customers, through branches and other channels such as telephone or internet banking.

Under the contract 300 staff from Lloyds TSB's existing operational teams and their incumbent suppliers will move to Fujitsu.

Igor Andronov, director of group IT, Lloyds TSB, said: "Lloyds TSB is committed to driving its business forward and developing products to ensure it continues to stand out in an increasingly competitive financial services market.

" Fujitsu's approach to managing our distributed computing environment allows us to work closely with them and use their skills to develop and continue to grow our business."

Tim Gibson, director of Fujitsu Services' commercial business practice, added: "Having worked with Lloyds TSB for a number of years, we have a clear vision of how we can work together to develop and improve not just the group's IT requirements but also the operational aspects of managing IT services.

"Our thorough understanding of what Lloyds TSB demands from IT, allows us to provide a tailored service to assist in achieving its goals."

Fujitsu Services also provides complete desktop support for other financial organisations such as Alliance & Leicester in the UK and Visa across Europe. The company has an annual turnover of £1.74 billion, employs 14,500 people and operates in more than 20 countries.