Friday, September 02, 2005

ABN Amro Bank signs $ 400 Million deal with Indian IT vendors InfoSys and TCS and offers additional business to InfoSys, Patni & TCS

One of the large outsourcing contracts was finalized on Sep 1, 2005.

ABN Amro, Netherlands-based banking major, announced its decision to outsource the entire IT Infrastructure management to IBM (estimated $ 1.8 Billion), Application Support to InfoSys and TCS ($ 260 Million to TCS and $ 140 Million to InfoSys) and retained Accenture, IBM, InfoSys, Patni & TCS for Application Development.

This is the largest-ever outsourcing contract for Indian IT vendors. It is also the largest contract for both TCS and InfoSys. In addition, it is likely to generate another $ 100 – 400 Million Application Development work to InfoSys, Patni & TCS.

It is a sign of maturity and global acceptance of Indian IT vendors’ capability to deliver. Coming at a time when GM and ING Vysya are likely to finalize outsourcing contracts around $ 2 Billion, one hopes that those deals should also have sizeable portion for Indian firms.

It is just a question of time when InfoSys, TCS and Wipro would join the league of IBM and EDS and bag billion-dollar contracts.

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