The Hindu Business Line : Yes Bank opts for IT outsourcing

UNLIKE other banking behemoths, Yes Bank plans to hit the ground running on the technology front having roped in leading consultants like KPMG and Gartner and with an IT budget of Rs 50-60 crore over the next five years.

With ambitious branch expansion plans, the bank is betting on outsourcing its IT requirements to reduce its go-to-market strategy, Mr H. Srikrishnan, Executive Director, told Business Line.

Yes Bank's branch banking strategy would have 35 branches opened by end-2005, double the number by 2006, 100 branches in 2007 and 250 branches in its fifth year of operations.

"What took a couple of years for other banks (read creating an IT backend) will take only a few months for us since we will outsource all our technology requirements including data servers, hardware, ATM switches to tech vendors," Mr Srikrishnan said.

"We will not build technology assets but ramp up as the need arises and the savings given due to this decision will have a huge impact on the cost to revenue ratio once we are fully operational."

The bank has already initiated talks with the likes of Wipro, HP and IBM for IT outsourcing, Sify and Reliance for meeting its hardware requirements, and identified vendors for cash management and treasury management solutions.

While KPMG's IT consulting division has helped Yes Bank zero in on Flexcube, the flagship banking product from i-flex Solutions Ltd, as its core banking solution, Gartner would draw the IT roadmap.

This would comprise the IT strategy, architecture, governance model, contract finalisation, service level agreement definition and validation of network design.

"On the aspect of security, Gartner will review and validate all the IT arrangements," Mr Srikrishnan said.

More Stories on : Private Banks | Outsourcing

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Progeon eyes knowledge services space

Insurance outsourcing revenues to touch $790 m by 2007

Borrowing plan lifts bonds; rupee steady

RBI cancels registration of Sehajpal Finance

UTV designs exclusive policy with United India

`Govt borrowing will go thru as scheduled'

Engineering a change, the ICICI Bank way

Leeladhar appointed RBI Dy Governor

Forging ties between MNCs and local companies — Yes Bank taps pharma, biotech opportunities

Yes Bank opts for IT outsourcing

Oriental Bank eyes buys in Kerala — Narang favours organic expansion in eastern region

LIC(Hyd) pact with HelpAge

6 in fray for 3 slots on Federal Bank board