This is the first time in the domestic banking history where a public sector bank has outsourced its IT enabled transformation plan and for implementation of its core banking solution (CBS). This is also the first of its kind for HP in the financial sector in India. HP has undertaken similar outsourcing contracts for domestic companies like Hindustan Lever, Ashok Leyland, Tata Steel.
The payment to HP will be done on a yearly basis as per the requirement, BoI chairman and managing director M Venugopalan said. On an average, the yearly outgo for the bank would be Rs 50-60 crore, he added.
Under BoIs IT plan, HP will implement and manage the CBS across 750 branches of the bank. HP will be working with Infosys Technologies and Oracle in this project. Infosys will help HP with its Finacle core banking solution while Oracle will provide database and data warehouse solutions. Finacle is a centralised and integrated corporate, retail and trade finance solution.
Under this contract, HP will also implement and manage a data warehousing and document imaging solution and provide integrated channel management including tele-banking and internet banking. The contract also envisages building and managing a datacenter, disaster recovery site, help-desk and call centre.
HP will manage the IT infrastructure of the bank; supply and maintain technology products including servers, desktops and peripherals across the branches and provide asset refresh and obsolescence protection for IT assets. This initiative will enable BoI not only to achieve a cost advantage but also derive significant business benefits in the competitive banking environment in India.
We have plans to transform BoI into a highly customer focused bank in the country. We want to align our IT strategy with business strategies which will help us serve our customers better, said Mr Venugopalan. HP will become a one point reference in the transformation. It will take care of future technology upgradation and will also undertake training for some of the banks staff in technology, he added.
Our services simplify the management of IT and facilitate the ongoing alignment of IT with BoIs overall business strategy to keep in pace with the dynamic banking environment, said HP India president Balu Doraisamy.