IBM Wins 10-Year Deal From Indian Bank

IBM said Monday that it has signed a 10-year agreement to provide a range of tech services to Kurmanchal Nagar Sahakari Bank, one of India's leading cooperative financial institutions. Financial terms were not disclosed.

Under the contract, IBM will provide Kurmanchal Bank with a variety of IT services, including infrastructure hosting and management, disaster recovery services, and network maintenance. IBM will provide the hosting services from its data center facilities in Bangalore and backup services from Nainatal.

Kurmanchal Bank officials said they expect the arrangement to allow the bank to reduce IT-related capital spending by as much as 60% and more easily expand 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," said Manoj Sah, Kurmanchal Bank's CEO, in a statement.

Kurmanchal Bank, established 25 years ago, maintains 17 branches in India's Uttarakhand state and is looking to open about 17 more over the next two years. It's also looking to roll out new services such as online and mobile banking, as well as ATM banking.

IBM officials said the deal highlights India's potential not just as a source for low-cost IT talent, but as a lucrative outsourcing market in its own right.

"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 midsize customers," said Nipun Mehrotra, VP and general manager for IBM's Global Technology Services unit in India.

IBM is in the midst of building up its workforce in India while trimming payroll in more mature markets, including the United States. The company now maintains more than 70,000 employees on the subcontinent.

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