I-FLEX BAGS $90-M DEAL FROM NAB

P P Thimmaya & Arun Iyer, Bangalore
The Economic Times (Delhi edition)In one of its largest deals, banking software major i-flex has bagged a five-year contract from National Australia Bank (NAB), estimated at $90 million. The contract is part of a larger deal awarded to Oracle, which owns a majority stake in i-flex. NAB has selected Oracle to supply software as part of a five-year plan to replace its banking IT systems. The first phase of the initiative includes the setting up of a technology platform for a low-cost direct banking system.

Sources said that besides its core banking solution, i-flex would provide support activities such as professional and application management services and analytics. Its role may also include consulting. A spokesperson for iflex, which recently announced its decision to change its name to Oracle Financial Services, declined to disclose the value of the deal.

India is home to three major banking solutions businesses, which include i-flex, Finacle of

Infosys Technologies and TCS’ BaNCS. Besides the large ones, the prominent players in the space include Nucleus Software, 3I Infotech and Infrasoft Technologies. The India-headquartered firms battle it out among themselves and with other global banking solutions majors like Misys and Metavante for contracts. Increasingly, the India-based companies are looking to expand their market reach into regions such as the Asia-Pacific, Europe and Latin America. Unlike in the IT services segment, deals in the solutions business come with the potential for a steady revenue stream. Though the initial contracts are smaller and sales cycle times longer, product companies are engaged with their customers over a longer duration, ensuring a steady stream of revenue.