Wipro Wins Outsourcing Contract After Indian Bank Terminates Deal With Beleaguered Satyam
March 1, 2010
In a recent deal, Wipro has acquired a major contract from India’s Punjab and Sind Bank (PSB) for $21 million after ending an earlier agreement with Satyam Computer Services.
The agreement cites that Wipro is responsible for provisioning, management of the Finacle core banking platform, system integration, and enterprise applications to PSB branches throughout India.
A contract with Satyam in 2006 ended in 2009 after the embattled outsourcing firm failed to meet PSB’s criteria. The deal was affected by the corruption scandal at Satyam in which chairman and founder Ramalinga Raju had inflated Satyam’s books, leaving the company short of $1 billion in its balance sheets.
In the new agreement, Wipro will be involved in management and commissioning of PSB’s deta center, service and support operations and the disaster recovery center.
PSB chairman, Sardar G.S.Vedi, was quoted as saying, “The vision of the bank is to leverage technology to achieve business transformation. We are re-engineering our IT processes and applications to deliver superior quality of service and products to accelerate business growth and achieve operational excellence,” reports finextra.com
He added, “Our customers will be able to access online and mobile banking soon. They will be able to buy and sell shares from online repositories. The first phase will cover 500 branches.”
Incidentally, Wipro had already installed core-banking solutions for UTI Bank, Dena Bank, Vijaya Bank and Oriental Bank of Commerce.
Business chief of India and Middle East, Wipro, Anand Sankaran said in a statement, “The contract includes 24×7 management of the underlying IT infrastructure of the bank,” Adding, “We will also carry out commissioning and management of the data centre and the disaster recovery centre apart from providing service and support,” reports the Economic Times.
The deal sheds light on recent reports that domestic markets will continue to play an important role in shaping the new outsourcing landscape for majors like Wipro, Infosys and Tata Consultancy Services outsourcing in India. With demand in the U.S. weakening, top outsourcing countries are likely to tap domestic markets and new geographies coming out of the recession, say analysts.
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