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IT biggies vie for integration deals
By siliconindia
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Wednesday, 03 December 2008, 16:29 IST |
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Bangalore: As banks like Lloyds TSB, HBOS, Bank of America and Merrill Lynch are set to merge, Indian tech biggies are in a race to grab the contracts to integrate these merging banks' software applications to consolidate various banking data, reported The Economic Times.
India's top tech firms including Infosys, Satyam and TCS are bidding against transnational rivals like IBM, Accenture and HP-EDS for several such contracts, each valued anywhere between $100 million and $250 million in annualised revenues.
Since offshoring will help these banks save costs by as much as 30-40 percent, these entities are seeking to partner with a vendor having significant offshore presence.
A consultant, who is advising some of these banks to structure their integration contracts, says, "Apart from looking at cost-saving opportunities such as offshore outsourcing, these banks also want to partner with their existing vendors because they would know the systems better. Domain expertise in implementing, or integrating a core banking application and ability to offer strategic business consulting are some of the parameters on which these vendors are being evaluated." Officials at TCS, Infosys and Satyam declined to comment on the issue.
Lloyds TSB, which merged with HBOS, is seeking partners to help the merged entity integrate its retail and wholesale banking systems through an information technology (IT) platform.
"The $19.5-billion merger between Lloyds TSB and HBOS will lead to a massive IT systems consolidation," another person close to the development said, requesting anonymity.
Infosys Technologies saw one of its customers, ABN Amro, get acquired by a consortium of banks, which included Royal Bank of Scotland - yet another Infy customer. "M&A is a silver lining for us in this environment, and we are winning transformation deals," Infy's chief executive S Gopalakrishnan said.