Hewlett-Packard (Canada) Co. has been awarded a seven-year, $420-million outsourcing contract to upgrade and manage TD Bank’s automated bank machine network and its point-of-sale payment systems across Canada.

Under the deal announced Tuesday, HP Canada will upgrade about 2,400 TD bank machines across Canada and the bank’s transaction processing systems.

“Through this innovative strategy, TD’s customers will benefit from the improved accessibility, security, availability and performance of new ABM and POS networks, and from emerging technologies such as smart cards,” Chuck Hounsell, senior vice president, TD Bank Financial Group, said in a release. “TD’s rigorous selection process ensures that the proposed technology solution will benefit all parties. We are confident that TD will enhance its ability to provide an efficient, comfortable experience for its customers.”

TD said the deal with HP Canada “will produce significant business advantages, such as a shift from fixed to variable costs, capital avoidance, operating cost and risk reductions, and increased efficiency and productivity.”

Fifty TD Bank jobs will be transferred to HP Canada under the outsourcing deal.

HP will be responsible for the overall delivery and management of the service desk, integrated management and communications, data center operations and critical governance processes. HP’s ProLiant server technology and NonStop NSK switch hardware and software will support the project.