Yes Bank outsources total tech requirements to Wipro

Our Banking Bureau
15 December 2004

The two partners will also jointly work to capitalise on technological advances and maximise business opportunities in the global banking domain for mutual benefit. Wipro will be the 'preferred partner' for servicing all of Yes Bank's future technology demands, according to the two agreements signed today.

Promoted by banking entrepreneurs Ashok Kapur and Rana Kapoor, Yes Bank will be a high quality, knowledge-based, technology-driven, state-of-the-art private Indian Bank catering to 'emerging India'. The two Indian promoters jointly own 52 per cent while Rabobank of the Netherlands holds 20 per cent. CVC-Citigroup, New York, AIF Capital, Hong Kong and ChrysCapital, San Francisco, collectively own 25 per cent of the equity, while top management executives hold 3 per cent.

Wipro's responsibilities include implementing core infrastructure and hardware, branch roll-outs, networking, managing the data centre and back-up support for disaster recovery. The outsourcing arrangement is backed by stringent service level guarantees to ensure integrated 24x7 support for all IT systems and applications running at Yes Bank.

A unique 'pay-per-use' model will save Yes Bank up to 30 per cent in costs progressively over the next seven years. The arrangement ensures that Yes Bank's initial technology investments are minimal, and its overall IT spends are variable and predictable in line with its planned growth. The arrangement protects Yes Bank against all obsolescence and redundancies in technology and insulates it from carrying forward any legacy systems.

The second agreement mandates improved operational efficiencies in banking systems by introducing international best practices. These advances will initially be implemented in Yes Bank and then jointly offered to the international banking and financial services sector.