Zensar tied up with Key Banks recently set up risk management consulting firm, Capital & Risk COnsulting (CRC) Group to offer the Basel II Solution Framework to financial institutions worldwide for achieving Basel II certification.
The company is also planning to offer this services in the Indian market, Krishnan Sakotai, head, Zensars financial services industry group said.
However, the Indian market is expected to take off slowly as the prohibitive costs are a big deterrent. But Mr Sakotai believes that Indian banks would be picking up parts of Basel II and implementing it.
Zensar is talking to prospective clients in US, Europe, South Africa and will enter the market by end of this month, Sakotai said. We are talking to all our banking clients and will also be leveraging our relationship with Fujitsu, which has a substantial presence in the banking segment, Mr Sakotai said.
The financial services industry group currently accounts for 10 per cent of Zensars revenue and the company was looking at taking this to 30 per cent. Basel II was identified as one of the growth areas and Zensar was looking at revenues of $2.5 million from this implementation.
Zensar had been working with the CRC Group over the past year for the Cleveland based KeyBank, which is the 15th largest bank in the US.
The Zensar-CRC collaboration had jointly developed tools, models and methodologies which were implemented over the past year at KeyBank.
The collaboration involved industry-leading experts in risk management and technology services. This enabled Zensar to create an integrated suite of tools required for the BASEL II certification.
Several of the CRC Groups managing directors and consultants have also been instrumental in driving the shape of the new Basel accord. The CRC Group was set up to make use of the opportunities that arose out of the Basel II accord. CRC had developed a set of tools, models, and methodologies that provide quantitative solutions to augment sound risk management practices and procedures and they were looking at commercialising it.
CRC was looking for a technology partner while Zensar was keen on a tie up with risk management experts to be able to provide a more holistic service which led to this strategic alliance, Mr Sakotai said.
Only the top 10 banks in the US have to compulsorily go in for Basel implementation but other banks too have got interested.
Other banks are now beginning to realise that even if they do not qualify for Basel II they are looking at implementing some of the Basel II parts relevant to their bank as it basically involves good practices, Mr Sakotai said.
Zensar will also be looking at the European market where the financial services authority has absolutely mandated everyone to do it including insurance companies and asset management companies that are being run by banks.