Top outsourcing firms including TCS, Infosys and Patni Computer wait for more clarity at RBS-owned ABN Amro, as the management remains undecided about outsourcing deals worth $400-500 million signed by the erstwhile Dutch bank four years ago with these vendors.
In April 2005, ABN Amro had announced several contracts worth nearly $2.5 billion, due to be renewed in 2010. While IBM had won the lion’s share of the deal (around $2 billion) for managing the bank’s servers, desktops and other IT infrastructure, Accenture, TCS, Infosys and Patni shared $400-500 million worth of contracts for software application, development and maintenance.
At least three people familiar with the sourcing decisions at ABN Amro told ET that while RBS is yet to take a call on whether it wants to integrate its technology and business systems with ABN Amro, there is a definite move to shrink the Dutch bank’s operations through a sale, which will bring down the outsourcing revenues for these vendors as well.
“It’s not business as usual. We are told it could take another few months before any clarity emerges. The 2010 renewal is not the only issue. The business seems to be getting smaller,” said a senior executive at one of the top tech firms serving ABN Amro. He requested anonymity because he is not authorised to speak about customer engagements.
Experts like Bob McDowall of Tower Group say RBS, which is now a nationalised bank in the UK, is under pressure to sell assets outside of UK. “IT integration (with ABN Amro) has effectively ceased. RBS certainly will not be planning IT integration initiatives that will make a sale or disposal of the ABN Amro businesses more difficult,” he said. “I would suggest that the longer-term prospects for the contract will depend on when and who acquires the relevant businesses in ABN Amro supported by the outsourcing contracts,” he added.
Officials at Infosys and TCS declined to offer customer-specific comments.
RBS, which has an annual IT budget of $3-4 billion, too is in the process of reviewing its businesses. Some experts say RBS will actually be looking at outsourcing in a big way to achieve these efficiencies after the strategic review is over.
“Cost has become more important for RBS now in the wake of the economic slowdown and there is a greater focus on outsourcing,” said Vikram Gulati, director at outsourcing advisory firm Quantum Step. An RBS spokeswoman confirmed that her bank continues to look at outsourcing to India.
“India is already a major centre for the group and is our third-largest employment centre. As a result of our acquisition of ABN Amro, we now employ 8,000 people in India serving our operations globally. Last year we have been progressing with work to integrate the two businesses and develop all our centres in the UK, India and across the globe,” the RBS spokeswoman said.
Tuesday, July 28, 2009
New Deals, Outsourcing, Wipro
Wipro bags 5-year contract from BJ's Wholesale Club
Wipro Technologies, the global IT services business of Wipro, has entered into a five-year agreement to provide IT data centre and applications management services for BJ’s Wholesale Club, Inc., membership warehouse club headquartered in Massachusetts, US. The company, however, did not divulge the size of the contract.
Under the agreement, Wipro will migrate BJ’s Wholesale Club's mainframe and open systems environment to its data centre in Nebraska, to enable the company to streamline their infrastructure solutions with operational flexibility and improved applications support.
Through this five-year engagement, BJ’s will also benefit from Wipro’s extensive expertise in providing applications management and support, disaster recovery, enterprise security and compliance services.
“BJ’s is in the business of providing our members value on brand-name groceries, consumer electronics, apparel, household items and seasonal products, and we do that by being as efficient as possible,” said John A Polizzi, Senior VP and CIO of BJ’s Wholesale Club.
“Our agreement with Wipro will help ensure that we can continue to meet our members’ desire for value without sacrificing quality while adapting to changes as we grow,” he said in a statement.
Under the agreement, Wipro will migrate BJ’s Wholesale Club's mainframe and open systems environment to its data centre in Nebraska, to enable the company to streamline their infrastructure solutions with operational flexibility and improved applications support.
Through this five-year engagement, BJ’s will also benefit from Wipro’s extensive expertise in providing applications management and support, disaster recovery, enterprise security and compliance services.
“BJ’s is in the business of providing our members value on brand-name groceries, consumer electronics, apparel, household items and seasonal products, and we do that by being as efficient as possible,” said John A Polizzi, Senior VP and CIO of BJ’s Wholesale Club.
“Our agreement with Wipro will help ensure that we can continue to meet our members’ desire for value without sacrificing quality while adapting to changes as we grow,” he said in a statement.
NRIs
New projects to attract Australia work visa holders
Source: GlobalVisas.com
Australia is launching ambitions new projects to lure skilled foreign workers to the country and help the economy.
The Australian Federal Government has used its current budget to pay for improved in infrastructure across the country. $4.3 billion has been invested in a cross-town rail link in Melbourne, the largest investment in Australian railway in 80 years.Numerous other investments include hospitals, roads, schools and public housing.
This new phase of development requires a steady flow of skilled foreign workers.
Australia immigration has used a points system for years where the points are assigned more heavily to professions that are deemed to help Australia.
The professions currently high in demand and that can be used to earn Australia visa bonus points include electricians, engineers, plumbers and gas fitters.
Australia is also at the top of the list by the International Monetary Fund of countries ability to bounce back from the global financial crisis. It is no surprise that so many skilled works are looking to live and work in Australia.
These Australia visa changes follow on from the change in July this year to the minimum salary level (MSL) for temporary skilled workers. The MSL was increased by 4.1% in an attempt to attract skilled workers to Australia in the hope they would move to Australia permanently.
Australia is launching ambitions new projects to lure skilled foreign workers to the country and help the economy.
The Australian Federal Government has used its current budget to pay for improved in infrastructure across the country. $4.3 billion has been invested in a cross-town rail link in Melbourne, the largest investment in Australian railway in 80 years.Numerous other investments include hospitals, roads, schools and public housing.
This new phase of development requires a steady flow of skilled foreign workers.
Australia immigration has used a points system for years where the points are assigned more heavily to professions that are deemed to help Australia.
The professions currently high in demand and that can be used to earn Australia visa bonus points include electricians, engineers, plumbers and gas fitters.
Australia is also at the top of the list by the International Monetary Fund of countries ability to bounce back from the global financial crisis. It is no surprise that so many skilled works are looking to live and work in Australia.
These Australia visa changes follow on from the change in July this year to the minimum salary level (MSL) for temporary skilled workers. The MSL was increased by 4.1% in an attempt to attract skilled workers to Australia in the hope they would move to Australia permanently.
IT market
Bill Gates: Networking sites are irritating
Microsoft co-founder Bill Gates said that he seldom logs out, rarely feels drained and finds social networking sites irritating.
"I am a 24-hour technology person," said Gates, on a visit here for overseeing the philanthropic activities of the foundation he has formed with his wife Melinda.
"I am not that big at text messaging and I am impressed with the young people doing that," he said at a conference.
However, Gates said, he reads random articles in silence whenever he feels drained. Calling social networking sites "irritating", Gates said he is flooded by "friend requests" everyday on Facebook.
"I get 10,000 friend requests everyday. It gets so irritating."
To this, Minister of State for Communication and IT Sachin Pilot, who shared the dais with the Microsoft co-founder, asked jokingly: "How many Bill Gates are there on Facebook?"
"I am a 24-hour technology person," said Gates, on a visit here for overseeing the philanthropic activities of the foundation he has formed with his wife Melinda.
"I am not that big at text messaging and I am impressed with the young people doing that," he said at a conference.
However, Gates said, he reads random articles in silence whenever he feels drained. Calling social networking sites "irritating", Gates said he is flooded by "friend requests" everyday on Facebook.
"I get 10,000 friend requests everyday. It gets so irritating."
To this, Minister of State for Communication and IT Sachin Pilot, who shared the dais with the Microsoft co-founder, asked jokingly: "How many Bill Gates are there on Facebook?"
HCL, New Deals
HCL inks pact with china-based eBaoTech
IT services provider HCL Technologies has entered into a strategic alliance with the China-based eBaoTech Corporation, a provider of software and services for life and general insurance industry.
Under the agreement, HCL would work with eBaoTech to identify fitment of eBaoTech's products in select geographies, HCL said in a statement.
Moreover, the companies together expect to help insurance carriers and intermediaries adopt IT solutions that would allow them to gain better process efficiencies in a cost effective manner, it added.
"We look forward to working with HCL to create significant and tangible value for insurance industry to become much faster, better, most cost efficient, and more scalable," eBaoTech CEO Woody Mo said.
Premkumar S, Corporate Officer, (Global Business Sponsor - Financial Services) HCL Technologies, said, "We are very excited about our partnership with eBaoTech as part of our product partnerships portfolio and see a lot of potential across major focus markets. As one of the leading end-to-end specialist insurance solution providers in the industry, HCL is equipped to fulfill the industry requirements by combining with eBaoTech's insurance system software capabilities."
Under the agreement, HCL would work with eBaoTech to identify fitment of eBaoTech's products in select geographies, HCL said in a statement.
Moreover, the companies together expect to help insurance carriers and intermediaries adopt IT solutions that would allow them to gain better process efficiencies in a cost effective manner, it added.
"We look forward to working with HCL to create significant and tangible value for insurance industry to become much faster, better, most cost efficient, and more scalable," eBaoTech CEO Woody Mo said.
Premkumar S, Corporate Officer, (Global Business Sponsor - Financial Services) HCL Technologies, said, "We are very excited about our partnership with eBaoTech as part of our product partnerships portfolio and see a lot of potential across major focus markets. As one of the leading end-to-end specialist insurance solution providers in the industry, HCL is equipped to fulfill the industry requirements by combining with eBaoTech's insurance system software capabilities."
IBM, new openings
IBM to offer IT education tourism in India
IBM today announced the launch of an education programme that it said would enable IT professionals and students to come to India and receive IBM certified training here.
To avail of this offer, an individual needs to register for a course from the IBM Power and IBM System Storage Curriculum, the company said in a statement.
All visa formalities, tickets and accommodation requirements are arranged and facilitated by an IBM training partner, it said.
The IT education tourism programme, slated to start next month, is a unique initiative where IBM has partnered with Stratom IT Solutions, India to introduce IT education tourism as a package for global students and IT professionals.
IBM plans to target around 300 participants in India for a minimum of 30 days this year.
As part of the programme, IBM would offer a comprehensive portfolio of technical training and education services for systems designed for individuals, companies and public organisations to acquire, maintain, and optimise their IT skills, the statement added.
To avail of this offer, an individual needs to register for a course from the IBM Power and IBM System Storage Curriculum, the company said in a statement.
All visa formalities, tickets and accommodation requirements are arranged and facilitated by an IBM training partner, it said.
The IT education tourism programme, slated to start next month, is a unique initiative where IBM has partnered with Stratom IT Solutions, India to introduce IT education tourism as a package for global students and IT professionals.
IBM plans to target around 300 participants in India for a minimum of 30 days this year.
As part of the programme, IBM would offer a comprehensive portfolio of technical training and education services for systems designed for individuals, companies and public organisations to acquire, maintain, and optimise their IT skills, the statement added.
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