HCL Technologies has formed a joint venture with CSC for a banking software and services company. With the move, the companies want to grab a larger pie of the multi-billion-dollar banking and financial services market.
Under the deal, CSC, which has 100 banking, financial services and insurance (BFSI) clients across 15 countries, will bring its core banking, cards, payments and default management industry talent, software and product development expertise to the table. HCL will provide its expertise in capital investment, product engineering and application implementation, along with banking sales and client engagement.
“The banking industry is taking bold steps toward cloud deployments and digital integration with surrounding applications and platforms,” said Anant Gupta, president and chief executive, HCL Technologies.
“Many of our banking clients are looking for modernisation of their legacy platforms, while simultaneously managing the increasing demands for data analytics services, multi-channel deployments, and increasing regulatory compliance requirements. The joint entity with CSC is designed to meet those critical demands with new and innovative solutions and to expedite the modernisation transformation journey of our banking clients,” Gupta added.
The companies, however, did not reveal the investment that will be put into the joint venture. In January last year, US headquartered information technology firm CSC and HCL forged an alliance to jointly develop strategies and solutions to tap into emerging opportunities, such as cloud and mobility, through application modernisation. The alliance triggered a strong buzz of an eventual merger. However, the company has strongly denied any speculation of an acquisition.
"CSC has led its banking clients through every major technology transformation for several decades," said Mike Lawrie, president and chief executive, CSC. “We are building on this success by continuously strengthening our existing offerings and bringing the benefits of next-generation cloud, cyber security, mobility and big data analytics to our global banking clients. With this venture, CSC will team with HCL to deliver best-of-breed-technology services and solutions to the banking industry,” he added.
HCL draws over 25 per cent of its revenues from the BFSI sector — which is relatively less compared with its larger peers such as Tata Consultancy Services, Wipro and Infosys — and is looking to scale it up further.