ABN AMRO Enters Outsourcing Deal with IBM and Others
ABN AMRO has entered a five-year contract to outsource its IT systems to five firms in the United States and India for about $2.2 billion.
Among these five firms are IBM and Accenture of the U.S. and Tata Consultancy Services, Infosys Technologies, and Patni Computer Systems of India. According to Carmel Crimmins and Rosemary Arackaparambil of the Washington Post,
The contracts for the Indian companies are the largest ever won by them, and marks growing confidence of global clients to award bigger contracts to Indian service providers.
It also underscores their success in winning business beyond their traditional dependence on the United States, which accounts for at least two-thirds of export revenues in most cases.
“This deal is going to establish the kind of scale and credibility that is required,” said TCS CEO S. Ramadorai. “This is the largest deal for the Indian industry. The one to beat is this one.”
ABN AMRO expects the deal to save the bank about 258 million euros per year starting in 2007. The contract will eliminate about 3,200 IT jobs.