IBM wins 10-year IT services contract with Indian co-operative bank
04 January 2010 | 6863 views | 0
IBM (NYSE: IBM) today announced that it has signed a 10-year information technology (IT) services agreement with Sardar Bhiladwala Pardi People's Co-operative Bank Ltd. (SBPPCB), one of the leading co-operative banks in Gujarat. The engagement, a complete operational expenditure (pay-as-you-go) model, will enable the bank to save up to 50 percent in its capital expenditure on IT infrastructure.
As part of the agreement, IBM will provide Managed Continuity Services encompassing server management, network and security management, backup and database management.
Established in 1929, the Sardar Bhiladwala Pardi People's Co-operative Bank's main objective is to help improve the lives of farmers, small traders and artisans. The eighty-year-old co-operative bank was on its way to implementing a Core Banking solution and signed up with IBM to manage its IT infrastructure requirements remotely from IBM's Global Management Center in Bangalore. The end-to-end managed services provided by IBM will reduce upfront capital expenditure for the bank allowing it to spend in an operational expenditure model over a 10-year period.
The agreement with Sardar Bhiladwala Pardi People's Co-operative Bank closely follows IBM's success with other co-operative banks across the country including Madhav Nagrik Sahakari Co-operative Bank in Rajasthan and with the Kurmanchal Nagar Sahkari Bank Ltd. in Nainital in Uttarakhand.
Commenting on the agreement with IBM, Mr. Ajay C Shah, Chairman of Sardar Bhiladwala Pardi People's Co-operative Bank Ltd. said, "We have seen IBM's track record in addressing unique requirements of banks like us in India. We are delighted with this partnership and have full confidence in the team to help us lead our growth in the days to come. We believe IBM's technology expertise and focus on delivering cost-efficient solutions will help us achieve our growth strategy and higher levels of customer satisfaction."
Mr. Hemant M Desai, Managing Director of Sardar Bhiladwala Pardi People's Co-operative Bank Ltd. said, "This model will set a good example for other co-operative banks for evaluating the core banking system with predictable and low expenditure as well as obtaining a high level of technology expertise."
Neeraj Sharma, Director - Integrated Technology Services, IBM India/South Asia said, "This is a strategic win since it is aligned to IBM's geo-expansion initiative and our focus on helping financial services clients. With businesses across the country sharpening their focus on cost-efficiency in these challenging times, IBM has once again proved its partnership value for small and mid-sized customers. We are excited about this opportunity with Sardar Bhiladwala Pardi People's Co-operative Bank to offer managed services that will help them reduce their upfront IT expenditure. The fact that the bank decided to enter into a 10-year long agreement further reiterates the trust clients, big and small, have in IBM's capabilities."
The contract was signed in December 2009.