Citibank and
UBS are in separate talks with Indian IT service providers
about the acquisition of their captive IT departments in India.
UBS is in talks with Indian IT companies such as Infosys and
Wipro, according to the Economic Times of India. Citibank is in
discussions with Indian IT firms Tata Consultancy Services (TCS)
and Wipro, among others, the paper reports.
The banks have got the most out of their captive IT operations
and now is a good time to sell, said Robert Morgan, director at
Hamilton Bailey.
Banks need the money now and can still benefit from the centres
even if they don't own them. "Once the operating centre is fully
operational and costs are contained and the labour force is stable,
what is the point of owning them?"
"They are a real asset worth a lot of money in a disposal. There
is no business disruption as it is established. The staff are
non-core to the original company. Why not realise a profit?"
He said Indian companies will have no problem proving themselves
to banks if they own these operations. "It is the ultimate calling
card when visiting any financial services for new business."
He said Indian companies have an advantage over other offshore
locations. "Indian offshore is mature enough now to handle this
before Brazil and other offshore countries come on stream."
Tata Consultancu Servicers
bought a BPO operation from Citi for £300m in October last
year.
TCS's head of global communications, Pradipta Bagchi, told
Computer Weekly in June, "This gave us the skills and experience to
fully service banks."
He said as well as retaining the business processing
responsibility for Citi, it has already picked up new banking
customers.