TCS close to $1 bn deal with Deutsche Bank

Information Technology major Tata Consultancy Services (TCS) is close to signing a deal with Deutsche Bank for an outsourcing prokect, estimated in value at around $1 billion.
For TCS, which had signed a $848-million agreement with the UK-based Pearl Group in October last year, the latest achievement could be the biggest outsourcing deal won by an Indian IT company.
"TCS is in close negotiations with Deutsche Bank for the outsourcing deal. TCS is the only company in the fray, and if it is successful, it will be able to wrap up the deal in a month," an industry source said. The processes to be outsourced to TCS could range from sales and collections to processing of financial data.
Deutsche Bank has been planning to move half of its back-office jobs and operations to India by the end of the next year, as part of an attempt to cut costs. The bank was also looking at shifting sales jobs and trading operations, and increasing its offshore staff to 2,000, apart from ramping up offshore research staff to 500 from the present 350.
Deutsche Bank is also looking at outsourcing certain processes to its Bangalore-based subsidiary, Deutsche Network Services. DNS is into payment and cash management outsourcing processes.

Net up 50 pc, bonus on cards TCS has announced the results for quarter and year ended March 31 2006. • Growth rate higher than IT industry average • FY06 profits up over 50% at $ 665 mn or Rs 2966.75 crore • Q4 revenues up 44 per cent, net profits up 76 per cent Y-o-Y • TCS announced maiden bonus issue in 1:1 ratio • Strong foundations laid for growth in 2006-07 • First Indian IT company to cross 60,000 employees • Final Dividend of Rs 4.50 per share announced Highlights · Total Income for FY06 at Rs 13,252.15 crore (Rs 132.52 billion); up 35.94 per cent Y-on-Y • Net profit for FY06 at Rs 2,966.75 crore (Rs 29.67 billion); up 50.07 per cent Y-on-Y •Net addition of 21,140 employees during the year • Total Number of clients added in FY06 are 330 • EPS for FY06 at Rs 60.63 from Rs 42.02 in Fy05

Earlier, TCS, along with Infosys Technologies and Patni Computer Systems, had also bagged a $250-million outsourcing contract from ABN Amro Bank. The Tata group company is also in talks with Citibank for an outsourcing deal, the size of which could not be ascertained.
TCS has been looking at Europe as a source of big outsourcing opportunities for Indian companies. This will also help According to N Chandrasekharan, executive vice-president and head global operations, Tata Consultancy Services, Europe could help India post a 40 per cent growth in the outsourcing segment, "The European market is the biggest opportunity for Indian companies, next only to the US. The country can post a 40 per cent growth, by taking a 'go-direct-to-market' approach and a combination of India and other nearshore-based delivery operations," Chandrasekharan said, at the recent India Leadership Forum -Nasscom 2006.
The right strategy and approach -- may be acquisitions -- were the right way to gain an entry into the European markets, he added. Nasscom President Kiran Karnik said, "UK is one of the major destinations, not only as a potential market but as a development centre. The industry trend in the recent years is expansion of the Indian IT industry's presence from beyond traditional destinations to newer geographies.”