(WEB HOST INDUSTRY REVIEW) — IBM (www.ibm.com) said on Monday it has signed a ten-year outsourcing contract to provide a range of IT services to Indian financial institution Kurmanchal Nagar Sahakari Bank.
The news follows the company’s announcement earlier this year that it will design, build and maintain three energy-efficient modular data centers in Delhi, Noida and Mumbai for Indian financial services firm Religare Enterprises.
Under the terms of this latest agreement, IBM will provide Kurmanchal Bank with infrastructure hosting and management, disaster recovery services, and network maintenance.
The company will provide the hosting services from its Bangalore data center, which the company opened in September, and back up services from its Nainatal facilities.
According to Kurmanchal Bank officials, the company says that the outsourcing contract should help reduce IT-related capital spending by as much as 60 percent and enable the bank to expand its operations.
“We believe IBM’s technology expertise and focus on delivering cost-efficient solutions will help us achieve our growth strategy and higher levels of customer satisfaction,” Kurmanchal Bank CEO Manoj Sah said in a statement.
First established in 1974, Kurmanchal Bank maintains 17 branches in India’s Uttarakhand state. The company is looking to double the number of branches in the next two years.
The bank is also looking to introduce new services such as online, mobile, and ATM banking.
“With businesses across India sharpening their focus on cost-efficiency in these challenging times, IBM has once again proved its partnerships with value for small- and mid-sized customers,” says Nipun Mehrotra, VP and general manager for IBM’s global technology services unit in India.
The deal signals a trend toward IT companies using India as a major source of cost-effective IT talent, as well as a profitable outsourcing market.
With more than 70,000 employees in India, IBM continues to build its workforce within the region.
Meanwhile, the company is reducing the number of employees in mature markets, such as the US, in the midst of the global recession.
