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Wipro, Cognizant push back rivals on BFSI track
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Wipro, Cognizant push back rivals on BFSI track
Bangalore: Not withstanding the tumbling down of global financial firms and followed crisis in the sector, Wipro, India`s third biggest software exporter, and Cognizant, ranked sixth, have seen revenue from the key banking, financial services and insurance (BFSI) vertical rise by about a fifth between October-December 2007 and July-September 2008, reports The Economic Times.
At the same time, a comparison of these two firms with their rivals like Infosys, Satyam and HCL finds the latter`s way behind in the race for a portion in the BFSI pie, which contributes about two-fifths of India`s $40 billion revenu
e from software and BPO exports in FY 2008.
Many large banking and financial services companies, including AIG, Royal Bank of Scotland and Lehman Brothers outsource IT projects to the top Indian vendors, and are among the worst hit by the financial turbulence.
"Some of our banking customers are trying to consolidate the number of vendors they work with in order to reduce costs," said a senior executive at a leading Indian IT company, requesting anonymity. "They are only going ahead with the projects they believe is critical for their operations," he added.
While there is uncertainty about how much the BFSI segment will spend in the months to come, the consolidation that is underway is seen throwing up a number of opportunities.
"There are significant opportunities in the sector - in areas such as merger integration, data and real time risk management technologies, and new compliance frameworks," said Cognizant CEO Francisco D`Souza. He added that his company has been a substantial provider of services to both acquiring and acquired entities in recent M&A deals. But new spending on integration might not mean that the Indian IT industry is out of the woods. There is bound to be realignment in expenditure by the BFSI segment and this could result in some vendors losing the race.
Source:
http://www.siliconindia.com/shownews/48551
At the same time, a comparison of these two firms with their rivals like Infosys, Satyam and HCL finds the latter`s way behind in the race for a portion in the BFSI pie, which contributes about two-fifths of India`s $40 billion revenu
e from software and BPO exports in FY 2008.
Many large banking and financial services companies, including AIG, Royal Bank of Scotland and Lehman Brothers outsource IT projects to the top Indian vendors, and are among the worst hit by the financial turbulence.
"Some of our banking customers are trying to consolidate the number of vendors they work with in order to reduce costs," said a senior executive at a leading Indian IT company, requesting anonymity. "They are only going ahead with the projects they believe is critical for their operations," he added.
While there is uncertainty about how much the BFSI segment will spend in the months to come, the consolidation that is underway is seen throwing up a number of opportunities.
"There are significant opportunities in the sector - in areas such as merger integration, data and real time risk management technologies, and new compliance frameworks," said Cognizant CEO Francisco D`Souza. He added that his company has been a substantial provider of services to both acquiring and acquired entities in recent M&A deals. But new spending on integration might not mean that the Indian IT industry is out of the woods. There is bound to be realignment in expenditure by the BFSI segment and this could result in some vendors losing the race.
Source:
http://www.siliconindia.com/shownews/48551
