Chennai: Tata Consultancy Services (TCS), part of Tata Sons, has bagged the Rs 15-crore banking software and hardware order from the Kumbakonam-based City Union Bank (CUB).
This will be the first time the Asian software giant will implement its Quartz core banking and solutions in a domestic bank. In addition, TCS will also implement eBankworks (an Internet-banking solution) and Almity, an asset and liability management solution.
Apart from implementing the banking solutions, TCS will also assist CUB on the hardware part along with CMC. TCS will also train the bank staff and establish the required disaster recovery framework.
Since CUB has 124 branches (mostly in rural areas in south), it is going to be a major technological leap. CUB chairman V Narayanan says the bank will implement the TCS solution is 20 branches in the first phase and by the year 2005, the Quartz solution will be implemented through the bank network. ''We plan to install 30 automatic teller machines (ATM) in semi-urban areas.''
In the meantime, with new generation private sector banks already computerising their operations from day one, the race is now for bagging small-sized older private sector bank accounts. Bharat Overseas Bank (BOBL) has already chosen i-flex Solutions' Flexcube banking solution.
According to N G Subramaniam, vice president and head (banking industry practice), TCS is in talks with 10-12 banks for selling its Quartz programme. ''The demand also depends on the profitability of the banks.''
TCS CEO S Ramadorai says the banking, financial services and insurance (BFSI) domain contributes between 40-50 per cent of the division's turnover (Rs 4,187 crore). TCS will be investing around 4 per cent of its turnover in research and development (R&D) for building assets and software solutions on the BFSI space.
When asked whether TCS missed the bus when all the new-generation private banks started their operations fully-computerised from day one, Subramaniam says: ''The new-generation banks were looking for centralised banking solutions at that time, and we did not possess it at that time. But we firmly believe that our solutions are far better due to the flexibility it offers to banks.'' ''We have been wanting to contribute the learnings abroad in an integrated manner,'' adds Ramadorai.
When asked about competitors tying up with hardware vendors and jointly bidding for banking projects, Subramaniam says the company's solutions can be rolled out on any platform. ''We are technology-independent and hardware-agnostic. The choice of hardware depends on the bank's need.''