Wipro has bagged a 10 year contract from Punjab & Sind Bank (PSB). In an interview with CNBC-TV18, Anand Sankaran, Senior VP and Head India & Middle East Business of Wipro said the contract value is upwards of Rs 100 crore.
Q: Is this a core banking solution or have you got a contract to maintain systems? Could you give us an indication of the contract ramps up or has an equal amount over a period of time and what amount could be?
A: It is total outsourcing contract for core banking operations of the bank. Besides the core banking operations we would also be implementing a whole lot of other applications—12 different applications. We would be also responsible for the underlying computing storage and network infrastructure, including commissioning and management of the entire data center and the data recovery system.
This is the 10 year contract. The first phase is basically implementation and roll out of the core banking application. We expect to rollout the pilot branches in the first six-months and expect to complete the entire rollout of 500 branches in the next couple of years.
Q: How much money is this contract worth?
A: This is a 10 year contract and it has a value upwards of Rs 100 crore.
Q: How are the margins comparable to it and what are the margins you make in the fist place and how are they comparable to their offshore margins?
A: This would be inline with our Wipro Infotech operating margins.
Q: Generally, are you expecting that the Indian banking space or the BFSI space domestically is and is likely to yield more order now than it has done in the past and it appears to have come out of the turmoil looking shipshape compared to the BFSIs elsewhere?
A: We are out of the slowdown, if you will, which we saw in Q4 of the last calendar year going into the second quarter of the last calendar year. We saw recovery happening from the Q3 of last year and since then we have seen not only banking but also other freight segments in India as well as globally seeing an uptick in consumption of technology.
Source:http://www.moneycontrol.com/news/business/wipro-bags-10-yr-contractpsb-worth-rs-100cr_443504.html
