Finacle adds $81.78 mn to Infosys Q4
Finacle, the banking solutions suite of Infosys, has won 16 new customers in 2005-06 and contributed $81.78 mn to the company.india Updated: Apr 14, 2006 17:45 IST
Finacle, the banking solutions suite of Infosys Technologies, has won 16 new customers in 2005-06 and contributed $81.78 million to the $2.15 billion revenues of the company.
"Growth of revenues from Finacle was 68 per cent year-on- year to $81.78 million in 2005-06, which is 3-4 times higher than that of its nearest competitor," Merwin Fernandes, Vice President and Business Head (Finacle) of Infosys, said.
He said the company won eight customers in Asia-Pacific, seven in Europe and Middle East and one in Latin America.
Overall Finacle has more than 100 customers both in India and abroad.
"Breakthrough in Latin America was critical as it gave us footprint in seven countries of the region, Fernandes said, adding that it was an exciting region and higher growth would be seen there in next one to two years.
He said six of the 16 customers that the company won in 2005-06 were part of the top 500 of the Bankers List.
In the last two years, the company has moved away from footprint strategy to target Tier 1 and Tier 2 global banks and top regional banks, Fernandes said.
He said the company was aiming to make Finacle a leader in the retail and universal banking software space in the next two to three years and it was making investments keeping this in view.
"In last two years, more than $20 million were spent on Finacle," Fernandes said, adding that now the efforts were on to increase the breadth of the products by increasing solution footprint.
According to analysts in 2005, the opportunity for vendors in the banking software space was $25.3 billion, of which $14.4 billion was for replacement market. In 2010, the market opportunity will grow to $62.6 billion.
Sixty-nine per cent of the European banks have either started to renew their overall application landscape or have concrete plans to do so. The project budgets for software and services would be around $250 million and $100 million.
Fernandes said the replacement cycle in Europe has kicked-off and the company was positioning Finacle to address that opportunity. "Our focus would be European and Asia- Pacific markets," he said.
He said in US market, the opportunity is large but replacement cycle was yet to start. "The company has its ears on the ground as it was already working with some of the top banking and financial service companies in US," Fernandes said.
He said the complete range of services from consulting to implementation available with Infosys gives Finacle an advantage.