Financial Daily from THE HINDU group of publications
Thursday, Sep 30, 2004
Financial Daily from THE HINDU group of publications Thursday, Sep 30, 2004 |
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Info-Tech
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Outsourcing Money & Banking - Foreign Banks TCS, Wipro, Infosys in race for ABN Amro deal Vishwanath Kulkarni
Bangalore , Sept. 29 TOP Indian vendors TCS, Infosys and Wipro are said to be in the fray for small slices of a billion dollar outsourcing deal being floated by Dutch financial powerhouse ABN Amro. Global giants Accenture, IBM and EDS are said to be the front-runners as primary vendors of the mega services contract that's likely to be finalised after the US Presidential elections. Sources at one of the top Indian firms confirmed the upcoming deal but declined to mention the size of the contract. However, market sources said the total IT outsourcing deal could run into several years and exceed over a billion dollars. ABN Amro had signed up EDS for a $1.3 billion outsourcing deal in 2002. The proposed deal could be from one of the divisions of the ABN Amro, sources said. Typically, in such multi-year mega deals, about 5 to 10 per cent of the work gets off-shored and the Indian vendors would be vying for that slice. It is expected that the global IT giants could also sub-contract a portion of their deal to the Indian vendors, sources said. "If the deal is split between two primary vendors, even then there's a good chance of Indian service providers benefiting from the two pies, as certain non-core or less-remunerative efforts would be passed on to the subcontractors," a regional software analyst for a foreign brokerage said. Industry sources said many more such mega banking IT deals were in the offing, which would be talked about once the US elections were over. Big-ticket deals have gone into a slumber with US Presidential election nearing its crescendo. Prior to the Presidential run-up a severe anti-outsourcing wave rendered Indian vendors tight lipped on details of new client wins. Large deals that entail job losses were also put on hold following the tirade against offshoring. Industry analysts said few of the top Indian vendors have the capability to bid, win and execute such large projects on their own. Some players like Satyam have advocated consortium approach towards bidding for specific projects. However, expect for a few, most industry players are against such a strategy.
More Stories on : Outsourcing | Foreign Banks
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