Bangalore, Jan. 24
With twelve new deals during the third quarter of this year, Finacle has surpassed its own record of notching up 4 to 5 deals during a good quarter in the previous years. Terming it a “fantastic year,” Mr Haragopal Mangipudi, Vice-President and Global Head, Finacle, told Business Line, that the banking solution business has successfully concluded twenty-one deals so far, in the current financial year. “We added twelve new deals this quarter, compared to fourteen deals the whole of last year (2008-09),” he said. The product is now running in about 65 countries, with 131 customers across six continents, according to company estimates.
“Whatever wins we are seeing now, revenue accruals will start happening in subsequent quarters,” Mr Mangipudi said. The core banking transformation wave, which began in the Asia-Pacific region a few years ago, has caught on in other markets as well. At present, Europe and the Asia-Pacific region together make up 90 per cent of Finacle's footprint, he said
The global recession threw up new challenges for the organisation, but the key initiative during the slowdown was to treat it as an opportunity for banks to invest in their platform. Globally, core banking decisions are now being given a lot of due diligence, he said, although they are being implemented in a “modular fashion” rather than comprehensively. He added that from September onwards the deal cycles had become longer.
Finacle managed to record a 2 per cent (year on year) growth so far, in this financial year. “Last year, we made $139 million (Rs 645 crore), while it is $142 million till now (Rs 659 crore),” Mr Mangipudi said. Sequentially, too, there is a two per cent growth from $48 million (Rs 223 crore) from the last quarter to $49.5 million (Rs 230 crore) this quarter. Finacle contributes around 4 per cent directly to parent company Infosys' revenues on a stand-alone basis.
Mr Mangipudi said that they intend to go all out in their efforts to enter new markets and have doubled their engagement teams in terms of sales and marketing efforts, augmented innovation spend, and increased the number of launches. There has been “significant enhancement” in overseas hires too, he added, “both in terms of engagement and solutioning bandwidth.” On a stand-alone basis, Finacle employs around 5,000 people.