BoI awards $150-million outsourcing contract to HP
By Mumbai: | 26 Feb 2004
Mumbai: Bank of India (BoI) yesterday announced that it has awarded Hewlett Packard India Pvt. Ltd a $150-million 10-year outsourcing contract to provide a full suite of core-banking solutions and related services to the bank. BoI is the first Indian bank to outsource its entire IT-related requirements.
Addressing a press conference at the launch of the bank's core-banking initiatives, Mr M. Venugopalan, Chairman and Managing Director, said out of its 2,400 branches, initially 750 branches that cover about 80 per cent of the bank's business will be connected. BoI's initial capital expenditure towards its IT initiatives amounts to Rs 200 crore, and it has earmarked technology spending of about Rs 50-60 crore on an annual basis for the next 10 years.
Mr Balu Doraiswamy, President, HP, said, the contract will be executed in 10 years. HP is working with its partners Infosys, which will provide the core-banking platform-Finacle, and Oracle for database-OFSA and data warehouse solutions.
Mr N.R. Narayana Murthy, Chairman and Chief Mentor, Infosys Technologies, said that banks will have to look at technology very seriously in the future because of the need to become "effective and efficient'' in the market on account of liberalisation and increased competition.
