Norway’s biggest bank has outsourced IT operations to Indian service provider HCL in a seven-year deal worth $400m.
DNB Bank has given HCL responsibility for managing IT infrastructure and core applications.
HCL is now responsible for co-ordinating the bank's multiple suppliers in infrastructure and applications. The role was previously outsourced to Norweigian service provider Evry.
Liv Fiksdahl, COO at DNB Bank, said: "HCL has demonstrated expertise in undertaking significant transformations for large clients in the financial services industry and with HCL operation’s we aim to deliver a first-class user experience to DNB’s users.”
The fixed cost is $400m but there are projects that will increase the size of the relationship over time.
As part of the deal, HCL will migrate and transform DNB systems and infrastructure from Evry to create two new datacentres in Norway.
HCL is setting up a delivery centre in Oslo that will start with 100 staff but is expected to expand. It already has a Norweigian delivery centre in Stavanger, to service existing customer Statoil.
The Nordic region was one of the few growth areas for IT outsourcing during the financial crisis and as a result India based suppliers have created a significant presence.
HCL has been a pioneer in the region with a large IT outsourcing agreement with Nokia in Finland. It has about 2,500 staff in the Nordics.
Ashish Gupta, head of EMEA infrastructure services division at HCL Technologies, said the Nordic region has been quick to mover to global delivery model for IT. “The Nordic companies have been like the US and UK in the way they have moved to the global delivery model".
Tata Consultancy Services (TCS), India’s biggest IT services firm, has a Scandinavian operation that comprises more than 4,500 professionals working across Sweden, Finland, Norway, Denmark and Iceland. Its customers include Ericsson, TDC, ABB, Telenor, NETS and SAS, as well as Nokia.