HCL jointly bid for this project along with another UK-headquartered banking software company, Misys. Other bidders included Tata Consultancy Service (TCS), Infosys, Cognizant and SAP, sources said.
SLC is planning to implement core banking solution (CBS) for its operations, which will be provided by Misys, while system integration and other IT-related activity will be taken up by HCL Technologies. Sources said the value of the CBS deal is estimated to be around 15-20 million pounds while the remaining 60-80 million pounds will be part of the software services work.
It is understood that the joint team of HCL Technologies and Misys have been selected for this contract and there is only the formality of signing the pact. When contacted regarding this development via email, HCL Technologies said they would not like to comment on speculation.
SLC provides low interest loans and grants to over one million undergraduate students across England, Northern Ireland, Scotland and Wales.
The deal offers significant opportunity for HCL Technologies as it does not boast of any CBS solution of its own, unlike its peers Infosys and TCS. Any banking software product contract offers a long term engagement with annuity revenue built into it, further, it also helps these IT services firms to cross sell other offerings in their portfolio.
HCL and Misys have been partners for the last seven years. HCL has made significant investments in Misys products’ centre of excellence to carry out implementation, integration, development and testing activities. According to the company, this partnership has grown over 100% on a year-on-year basis in the last two years.
The UK is the second largest market for the Indian IT services industry after the US. HCL Technologies has significant presence in the country along with a software development centre, and it also made a large acquisition of Axon Consulting for around 440 million pounds in 2008.
Europe accounts for 27.9% revenue of HCL Technologies, recording a sequential growth of 2.6% for the latest three-month period between June and September, and UK contributes overwhelmingly to the revenue. Besides the IT sector outsourcing contracts from the private sector in UK, the public sector is also offering opportunities for Indian firms.