ABN Amro Outsourcing Deal
In one of the biggest European Outsourcing deals, ABN Amro has signed a US$2.2 billion dollar IT Outsourcing deal with several vendors including IBM,Infosys & TCS. The deal includes IT Infrastructure Outsourcing ( IBM) , Application Maintenance ( TCS & Infosys) and Application Development ( Accenture,IBM,TCS,Infosys,PCS).
Though IBM has won the majority of the deal, its still a huge contract for the Indian firms . TCS expects revenues from this contract to be around $250 million while Infy expects around $140 million.
The deal also signals the arrival of Indian firms as major global players capable of handling multi-year , multi-site contracts. "This deal is going to establish the kind of scale and credibility that is required," TCS Chief Executive S. Ramadorai told reporters via a video conference from Amsterdam.
Analysts says it's all a sign that Indian IT firms are increasingly being invited to the table to bid on contracts that are global in scope. "I would expect to see a lot more of these kinds of deals going forward," says Cindy Shaw, who tracks IT services for investment firm Moors & Cabot. It's expected that most of ABN Amro's technology work will be carried out in India, where costs are about one-third of those in Western markets.
In one of the biggest European Outsourcing deals, ABN Amro has signed a US$2.2 billion dollar IT Outsourcing deal with several vendors including IBM,Infosys & TCS. The deal includes IT Infrastructure Outsourcing ( IBM) , Application Maintenance ( TCS & Infosys) and Application Development ( Accenture,IBM,TCS,Infosys,PCS).
Though IBM has won the majority of the deal, its still a huge contract for the Indian firms . TCS expects revenues from this contract to be around $250 million while Infy expects around $140 million.
The deal also signals the arrival of Indian firms as major global players capable of handling multi-year , multi-site contracts. "This deal is going to establish the kind of scale and credibility that is required," TCS Chief Executive S. Ramadorai told reporters via a video conference from Amsterdam.
Analysts says it's all a sign that Indian IT firms are increasingly being invited to the table to bid on contracts that are global in scope. "I would expect to see a lot more of these kinds of deals going forward," says Cindy Shaw, who tracks IT services for investment firm Moors & Cabot. It's expected that most of ABN Amro's technology work will be carried out in India, where costs are about one-third of those in Western markets.
posted by Cogito at
Thursday, September 01, 2005
5 Comments:
I believe these must be some new additional contracts, in addtion to those which had been given away earlier... It seems, our guys are enjoying back home with all these contracts....
By
Ram C, at 10:21 AM
God am I happy....all my vetti friends at TCS will have their hands full now :)
By
Ram, at 1:06 AM
ram - It might take ages before your vetti friends get started on this :-)
ram.c -- Thought EDS had the lion share from ABN Amro before...
By
Cogito, at 1:48 PM
The ABN AMRO deal is a real morale booster both for Infy and TCS as they are identified as the Preferred Vendor for any new development activity, currently not planned and hence not covered in the contract terms.
Considering the way the IT software developments works juxtaposed with the ever changing product suite of the banking/financial services market, it is win-win all the way for these two Indian corporates
By
Anonymous, at 2:29 PM
Yeah, its a big boost for TCS,Infy
By
Cogito, at 12:48 PM
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