L&T Infotech ties up with Fidelity unit

L&T Infotech, the information technology arm of the $2 billion Larsen & Toubro, the engineering and construction conglomerate, has tied up with Fidelity Information Services, a division of Fidelity National Financial, to provide information technology solutions to the Indian banking industry.

As a part of this exclusive arrangement L&T Infotech will be the sole providers of Fidelity's products and services in India, including core banking, trade finance, retail banking, offshore banking, cash management and several other ancillary banking solutions.

"This alliance will bring world-class business solutions of Fidelity and the technology and quality standards of L&T Infotech to the Indian banking industry, which is presently poised to take a quantum leap in upgrading its IT systems to match global competition," said V K Magapu, CEO and chief investment officer of L&T Infotech.

While speaking about the new partnership Simon Bakker, managing director sales-Asia Pacific of Fidelity Information services said that the company would be interested in setting up a development centre in India in partnership with L&T Infotech in future.

He also added that Fidelity, which has a large war chest set aside for acquisitions, would be interested in picking up a stake in L&T Infotech if the opportunity arises.

The L&T Infotech-Fidelity Information Services partnership has already signed on its first client""Bank of Baroda for which they will be providing trade financing and remote branch management products and services. The duo plan to be a part of all public sector bank automation bids.

Fidelity Information Services picked up a 29 per cent stake in Covansys, US-based services company with development centres in India, for $131 million in April 2004. Though a late entrant which is already crowded with established players like i-Flex and Infosys, the company is hoping to gain a foothold in the Indian banking industry by leveraging its partnership with L&T Infotech.