Infosys Technologies (NASDAQ:INFY) and B-Source today announced a technology partnership to provide a 'pay-as-you-transact' model, known as Business Service Provisioning, to European banks in the private banking and asset management sector.
This new approach takes away the headache of managing the IT infrastructure and bank back office administration and provides a scalable approach, to enable private banks to focus on delivering value to their customers.
Rajiv Pradhan, CEO B-Source commented: "To compete more effectively, private banks are responding by outsourcing their back office administration. The new solution from B-Source and Infosys provides them with the predictability of a world class infrastructure to enable them to focus on delivering innovation and value to their customer base."
In the latest World Wealth Report 2004, Merrill Lynch estimates the overall high net worth population market to be worth some $28.8 trillions in 2003, growing to $40.7 trillions by 2008. Specifically, this growth is identified in Asia and North America where it is predicted to comprise some 57% of the market by 2008.
Jitin Goyal, sales director EMEA Infosys commented: "Increasing competition from large conglomerates to drive down costs in services offered to high net worth individuals, is forcing private banks to reassess their operations. Private banks in Europe are also having to respond to an increasing geographical spread of their customers, in markets such as Asia Pacific and the North America."
Delivered as a service provision model, private banks will have the flexibility and scalability to expand their operations outside the traditional European markets to deliver products and solutions to the increasing global marketplace. Goyal, Infosys commented: "Our expertise in managing and delivering predictable IT solutions through our Global Delivery Model will enhance the competitiveness of the B-Source service offering, to enable banks to benefit from economies of scale that large financial conglomerates take for granted."
This approach has already been adopted by the Swiss private banking sector. Banca del Gottardo (owned by Swiss Life) recently announced it was outsourcing the majority of its back office administration and IT development, maintenance, and operations to B-Source. BSI (owned by Generali), which already outsources its IT operations and development to B-Source, has also announced it will additionally outsource its back office administration to B-Source.