Tata Consultancy Services (TCS), India’s largest information technology (IT) services provider, today said it had signed a 10-year deal with Deutsche Bank to replace its existing core banking solutions with TCS Bancs. The implementation will cover over 30 countries.
While the financial details of the deal were not disclosed, TCS said it was a ‘large’ deal. TCS generally terms deals over $50 million large.
The deal includes both product implementation and post-implementation services, including licence fee, annual maintenance fee and services fee, which would be higher than a typical IT services deal.
For TCS Bancs, the financial product arm that accounts for four to five per cent of TCS’ revenues, with over 270 customers, the Deutsche Bank implementation is one of the largest in recent times. Close to 100 employees at TCS are working on this contract.
“At present, Deutsche Bank has a core banking set-up that is a legacy-based system and uses multi-platforms. After this implementation, Deutsche Bank will have a single-uniform core banking system (CBS) across its various centres. We have gone live with our platform in Abu Dhabi and now, we will take this to other countries. Just the implementation of CBS will take anywhere between three and five years,” said N Ganapathy Subramaniam, president – TCS Financial Solutions.
Subramaniam said with banking and financial services out of the slowdown, they were increasingly looking at such technology engagements as they renew focus on IT spending. “The emerging markets are growing faster than the developed markets. But we have seen that in the global markets, the spent on packaged software will grow at a compounded annual growth rate of 10 per cent, much faster than the internal IT software development that is expected to grow by two-three per cent,” he said.
