UBS has sold a reference data management system to Tech Mahindra, which will now be run by the Indian service provider as a service and offered to other customers.
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Tech Mahindra acquired the IP for the UBS reference data management system, which captures and cleans data and is now providing a service that improves the quality of data at a lower cost.
“The market has a need for companies to do this for them because it is not a core competency,” said Vikram Nair, head of Europe at Tech Mahindra.
Tech Mahindra is working with specialist consultants in Europe to help it in certain sectors. Jean-Louis Bravard, who led EDS’s financial service practice globally in the past as well as holding the role as global CIO at JP Morgan, is advising Tech Mahindra in the finance sector.
Bravard said the quality of data is essential today as businesses attempt to use big data. “Everyone is talking about big data. But if you have bad data and you do big data you have a big mess,” he said. “This kind of service improves the quality of data and reduces costs.”
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Nair said this kind of deal is part of a trend in outsourcing seeing businesses outsource operations. He said: “We started with IT outsourcing then there was business process outsourcing and now operations outsourcing. Clients do not want to worry about technology.”
Tech Mahindra has experience in this type of service with its telco customers, where it runs a shared billing platform for four small telcos.
The trend is already underway in the investment banking sector. Four investment banks are planning to build a data platform to store customer data, which will then be managed by a post-trade services provider. JPMorgan, Barclays, Goldman Sachs and Credit Suisse have signed a memorandum of understanding to build a data storage platform, the management of which will be outsourced to the Depository Trust and Clearing Corporation.