BT is to manage Nationwide Building Society's networked IT services following the signing of a seven-year outsourcing contract.

The deal, worth £160 million, will see Nationwide transfer all voice and data networking infrastructure, third party network contracts and in-scope staff to BT.

Nationwide's multiple networks will be consolidated onto BT's 21CN Global network which will support both voice and data services on a single converged platform.

"In delivering this contract, BT will build on its unrivalled track record in providing transformational network centric outsourced solutions which meet the demands of the financial services industry," stated Francois Barrault, chief executive of BT Global Services.

It was also asserted that by moving towards a multi-sourcing model, Nationwide could benefit from reduced service costs and better service flexibility.

According to a report in industry publication IT Pro, Nationwide announced earlier in the year that it is to switch to the SAP system as part of a refitting of its core banking systems.