Infosys and Accenture have entered the final lap to clinch a Rs 900-crore ($150 million) IT outsourcing contract from Australia-based financial services provider Macquarie Group. The five-year contract will include application development, testing and infrastructure management services (IMS), said sources privy to the development.
Macquarie provides banking, financial, advisory, investment and funds management services. It employs more than 13,900 people in 28 countries. As of last September, Macquarie had 295 billion euro worth of assets under management. When TOI contacted Infosys and Accenture, they declined to comment on the deal. Both Accenture and Infosys have engaged with Macquarie in the past. Accenture has assisted Macquarie in its core banking implementation, while Infosys had won a $25-million procurement and account payable BPO deal in 2012.
Sources told TOI that HCL, Cognizant and Genpact-Headstrong are some of Macquarie’s incumbent IT service providers.
“Under Vishal Sikka (Infosys CEO), and with his focus on digital technology, design thinking and automation, Infosys could well be positioning itself to return to its former glory, especially in the financial services sector where it is still a very strong performer,” said Phil Fersht, chief executive officer of US-based IT advisory firm HfS Research.
“There is a cut-throat race to close out deals like Macquarie – much will depend on which provider wants it more and is prepared to take a risk on the margins down the road. It also depends on how much ancillary business the providers think that can glean if they win the application development and testing pieces,” Fersht added.
Infosys’s cross-town peer Wipro has bagged an IT contract from Greater Cincinnati Water Works (GCWW) to transform the utility’s CRM (customer relationship management), billing and service bureau operations. GCWW provides about 133 million gallons of water a day to over 1 million people across the states of Ohio and Kentucky in the US.
Hewlett-Packard (HP) has won three multi-million dollar IT outsourcing contracts with sizable work expected to be done offshore (much could come to India). It has signed a seven-year infrastructure and applications services agreement with Dutch retailer Ahold, which has presence in the US and Europe and which did net sales of 32.8 billion euro last year.
“This is a major deal renewal. Originally it was an EDS contract (EDS was acquired by HP), but HP pulled out all the stops to provide end-to-end services. This was not easily won as the Ahold team sought concessions for giving HP more of its business but should be a win-win for both companies,” said Ray Wang, CEO of US-based Constellation Research.
When TOI contacted Ahold on the deal, spokesperson Tim van der Zanden said, “We do not disclose all the partners we work with, and cannot comment on speculation regarding contract values.”
HP has won a $52-million (Rs 312 crore) IT contract from Victoria Police. HP pipped IBM, Fujistu and Capgemini to bag the five-year deal to provide application development, workload and cloud solutions and managed mainframe services. HP has also bagged an over $3.2 million (Rs 18 crore) contract from JP Morgan where HP will support critical processes for its investment banking business and trading floor for securities services. When TOI contacted HP for comments on the Ahold and JP Morgan deals, the company said, “Request you to direct your enquiry directly to the organizations concerned.”