Under the agreement, both companies will cooperate in developing, marketing, selling and delivering solutions and services to customers in the capital markets, private client and asset management segments of the financial services industry. The companies also plan to jointly pursue new business development opportunities, including market-making initiatives, within these sectors.

Specifically, Capco and HP plan to address key market issues such as consolidation, cross-border trading, changes in privacy laws, disaster recovery and the move to T+1. The alliance will focus on solutions for transaction processing, operational risk management, straight-through processing (STP), multi-channel distribution, data management, operational and financial performance management.

Arun Oberoi, vice president and general manager, HP worldwide industry and corporate accounts business, says: "Our alliance with Capco is a direct response to the financial market's need for complete solutions that combine business strategy with IT strategy."

Rob Heyvaert, chairman and chief executive officer, Capco, adds: "This alliance will deliver strengthened end-to-end solutions that will help customers achieve operational efficiency, augment their technology and operational infrastructures, as well as address other business-critical needs such as sharing infrastructure to cope with rapidly rising fixed costs."

As part of the agreement, HP will serve as Capco's preferred provider of IT infrastructure and services. Likewise, Capco will serve as HP's preferred provider of business strategy and process consulting as well as software components and solutions within the financial services sector.