TCS creates new arm for financial products
Tata Consultancy Services (TCS) is getting much more serious about its financial products’ business. Faced with stiff competition from i-flex and Infosys’ and global majors such as SAP and Temenos in the banking software products’ segment, TCS has formed a new business unit called TCS Financial Solutions. The unit will target Tier I and Tier II banks to sell its banking software product 'BANCS' which is similar to Infosys’ Finacle and i-flex’s Flexcube. US-based SAP and Temenos are the leaders in banking products’ segment which has a global size of $40 billion.
Headed by N. G. Subramanium, TCS Financial Solutions will have an independent team, with offices in New York, London, Zurich, Sydney, Beijing, Bangalore and Sao Paolo. It will take up all the work relating to sales, support and maintenance of BANCS that TCS added to its portfolio after its acquisition of Sydney-based Financial Network Solutions (FNS) in 2005. The offerings include core banking solutions, wealth management, compliance, treasury and other solutions pertaining to banking processes.
Recently, software major Oracle which owns a majority stake in i-flex formed a new Financial Services Global Business Unit, headquartered in New York and headed by Rajesh Hukku, the current chairman and managing director.
Industry observers feel that product-based revenues are more lucrative since a product that is installed in a bank can yield license revenues year after year thereafter, and once installed can generate additional revenues from maintaining the software product.
TCS's financial products’ business has been growing in the last couple of years.