UK-based Royal Bank of Scotland is expected to outsource around $2 billion worth of back office and application development projects to the Indian outsourcers, including TCS and Infosys, reported THE ECONOMIC TIMES.
By 2011, RBS aims to save around $4 billion in operational costs by outsourcing non-core IT activities and plans to focus more on marketing initiatives, reported the newspaper, citing Stephen Hester, chief executive of RBS.
According to Reuters, RBS plans to consolidate its existing data centres, replace the current claims system in its insurance business, and deploy new retail banking solutions. Indian tech vendors are set to gain from around $9.5 billion technology spend planned by the RBS.
RBS also works with CSC and Sapient, and may retain them for onsite projects. For RBS, India is an important part of the bank’s restructuring and integration with ABN Amro, reported the newspaper.
Sabyasachi Satyaprasad, partner at offshore advisory firm Tholons, said: “RBS is planning to consolidate its processes across retail and wholesale banking, an initiative that was long pending, so this spend is not really surprising.”
