To implement core banking system for 52 countries.
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TCS' deal with Deutsche Bank is one of the largest core banking installations in recent times.
Contract could mark the beginning of many similar ones in the financial services space.
Adith Charlie Mumbai, April 22
Tata Consultancy Services may soon deploy its core banking solution at Deutsche Bank's global locations as part of a deal valued at over $100 million, sources say.
The bank will implement TCS' Bancs (suite of software products) core system for 52 countries from hubs in Frankfurt and Singapore with specific focus on two of its West Asian operations, according to details available on ibsintelligence.com.
The TCS Chief Executive Officer and Managing Director, Mr N. Chandrasekaran, when approached, said, “We do not give customer-specific information.” A spokesperson for Deutsche Bank did not offer any comments to a Business Line query.
Sources say TCS' deal with Deutsche is one of the largest core banking installations in recent times. The engagement is part of the bank's strategy to consolidate its multiple core banking platforms in the 52 countries, they said.
Analysts feel the contract could mark the beginning of many similar ones given out in the financial services space. This is because large banks have been delaying their technology refresh cycles for at least 18 months due to the economic meltdown. They also need to gear up for new regulatory and compliance guidelines that have been put in place post-Lehman.
The pricing mechanism in a software product deal revolves around the licence fee (along with the initiation fee) and it is followed by an annual maintenance fee for the duration of installation.
In most cases, the maintenance fee is 20-25 per cent of the overall contract size, thereby ensuring IT companies of an assured revenue stream.
TCS' financial solutions practice, which is a strategic business unit, has started looking up after two difficult years of reduced orders due to the economic downturn.
Recently, it successfully deployed its insurance product TCS Bancs across Life Insurance Corporation's operations in five countries in West Asia.
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