The Hindu : HP gets $150 m Bank of India contract

Online edition of India's National Newspaper
Thursday, Feb 26, 2004

Business

Business

HP gets $150 m Bank of India contract

By Our Staff Correspondent

M. Venugopalan (extreme left), CMD, Bank of India, with N. R. Narayana Murthy, Chief Mentor Infosys, and Balu Doraisamy, President, Hewlett-Packard India, at a press conference in Mumbai on Wednesday. — Photo: Paul Noronha

MUMBAI, FEB. 25. Bank of India has selected Hewlett Packard (HP) as its preferred supplier of information technology infrastructure and applications for a ten year outsourcing contract valued at over $150 million.

This contract is the first of its kind encompassing IT enabled transformation in a fully outsourced model. Under the contract, HP will implement and manage a core banking solution (CBS) across 750 branches of BoI. The CBS is based on Infosys Finacle application.

Also, HP will implement and manage a data warehousing and document imaging solution and provide integrated channel management including tele-banking, Internet banking and ATM.

The contract also envisages building and managing a data centre, disaster recovery site, help-desk and call centre. HP will also manage IT infrastructure and networks across 750 branches of the bank; supply and maintain technology products including servers, desktops and peripherals across the branches.

M. Venugopal, Chairman and Managing Director, BoI, said, "We have plans to transform ourselves into a highly customer focused bank in the country. We want to align our IT strategy with business strategies.'' BoI has over 2,500 branches and operations in more than 10 countries abroad. At present, the operations at about 1,226 branches have been computerized using Total Branch Automation (CIBEX). Another 1,057 branches operate in partially computerised mode, namely advanced ledger posting machines.

The bank envisages about 43 million customer accounts and six million transactions a day by the end of the tenth year of the contract. BoI will start with the initiative across 100 branches by 2005. Around 750 branches covering 80 per cent of the bank's business will be covered over two and a half years. BoI has earmarked Rs. 50-60 crores on an annual basis for the next ten years for this initiative.

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