IBM bags 10-yr IT deal from Guj co-op bank

Written by fe Bureau | New Delhi | Updated: Dec 29 2009, 09:29am hrs
Global technology major, IBM has signed a 10-year IT services deal with Sardar Bhiladwala Pardi Peoples Co-operative Bank Ltd (SBPPCB), a co-operative bank in Gujarat. According to the contract terms, the company will provide managed continuity services which will include server management, network and security management, back-up and database management. The deal size was not disclosed.

Based on the pay-as-you go model, which will be complete operational expenditure for the bank is expected to result in savings of up to 50% in the banks expenditure on IT infrastructure. IBM India has several co-operative banks across the country as its clients, which includes Madhav Nagrik Sahakari Co-operative Bank in Rajasthan and Kurmanchal Nagar Sahkari Bank Ltd in Nainital. This model will set a good example for other co-operative banks for evaluating the core banking system with predictable and low expenditure as well as obtaining a high level of technology expertise, said Hemant M Desai, MD of Sardar Bhiladwala Pardi Peoples Co-operative Bank Ltd.

The 80-year-old co-operative bank is implementing a core banking solution. Post the deal the company will manage the banks IT infrastructure requirements remotely from IBMs global management centre in Bangalore. The end-to-end managed services provided by IBM will reduce upfront capital expenditure for the bank allowing it to spend in an operational expenditure model over a 10-year period.