Closed for more than a half-decade, the Delhi Stock Exchange plans to resume operations later this year and has tapped U.S. outsourcing giant IBM to assist with the effort.
Under a $2.3 million, five-year pact disclosed Wednesday, IBM will provide a range of services to DSE, including network, server, and help desk support, as well as business continuity capabilities that DSE needs to comply with Indian financial rules.
Founded about sixty years ago and at one time hosting 2,800 company listings, DSE shuttered operations in 2003 after trading volumes became negligible and most of India's stock swapping moved to the Bombay Exchange.
"AS DSE looks to claim back its position as one of the country's leading stock exchanges, the agreement with IBM couldn't come at a better time," said HS Sidhu, DSE's CEO and executive director, in a statement.
"IBM will bring immense value to the exchange by providing time-tested and world-class managed services that would help DSE become operational and successful once again," said Sidhu.
IBM plans to build, host, and manage a disaster recovery center for DSE. It will also monitor the exchange's hardware and network devices on a 24x7 basis. DSE will only pay for the equipment and services it uses, without any upfront capital investment.
"Companies today want to do more with less in these economically challenging times," said Neeraj Sharma, director of integrated technology services for IBM's Indian and South Asian operations.
Vijay Gupta, chairman of DSE's Business Development Committee, said he's confident that the deal with IBM will put the exchange back on its feet. "DSE will play a key role in the trading landscape of India , once re-launched," said Gupta.
Separately, IBM said Wednesday that it signed a five-year IT services contract extension with Dow Chemical. Financial terms were not disclosed.
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