Lloyds Banking Group Plc signed a 10-year deal with International Business Machines Corp. to move around 1,500 jobs and outsource the management of its data centers to the U.S.-based technology giant, The Register reported, citing an internal memo.

The transfer will include roughly 500 of the bank's staff and around 1,000 contractors that support it, according to the June 6 report, with the transition to IBM's cloud expected to take three years.

The jobs would mainly come from Lloyds' infrastructure technology services team, with some of the staff to be retained to manage the bank's relationship with IBM, The Register added. The bank reportedly said it would also keep some of its staff in its group IT function to oversee its cloud transition and provide services.

Morteza Mahjour, Lloyds' chief information officer, reportedly said the move will help make the bank more scalable and will supply new technology on demand. The bank has already drawn up controls and mitigation plans to counter the risks from outsourcing to IBM's cloud, according to the report.

Originally, Lloyds had planned to transfer 1,961 jobs to IBM.