Infosys has been putting in a lot of efforts to strengthen its flagship product, Finacle, for the banking industry. The software major in the recent past has made two acquisitions to broaden the features of the product. The first acquisition was to add CRM (customer relationship management) capabilities and the second was to extend the product to cater to the wholesale and investment-banking segments Read more.
To strengthen the product on the technology front, the company has now tied up with Sun Microsystems, one of the most successful technology companies when it comes to Internet computing infrastructure. Finacle will now be implemented on platforms (hardware and operating systems) provided by Sun. The advantage that Infosys gets due to the alliance is that Sunís systems are known to be the best when it comes to handling transaction intensive processes and the banking industry by its very nature is transaction intensive. Infosys, therefore, will be able to assure its clients of scalability (ability to handle large number of transactions) and robust solutions.
The banking industry has been greatly impacted by the IT revolution. Today, thanks to the Internet, a number of banking transactions can be carried out sitting at home. While at one end this has meant convenience for customers and lower cost of operations (for banks), it also has made it imperative for the banking industry to have resilient and robust IT systems to handle these customer requirements. Thus, the need is to have end to end banking solutions that support straight through processing, unified customer view and consistent multi-channel customer experience.
While companies like Infosys will ensure that business rules are captured in the solution, Sunís platforms will meet the requirement at a systems level. The alliance opens up a world of opportunity for Finacle. Sun marketing the product will help it gain wider acceptance in the western markets. Further, leveraging on Sunís brand, Infosys can hope to reach out to a large number of organisations. The alliance will benefit the customer in terms of reduced time to market and lower cost of ownership.
Infosys saw a 119% growth in product revenues in FY02. Consequently, the contribution to revenues increased from 2.5% in FY01 and 4% in FY02. Finacle had a 60% market share among Indian banks. According to the companyís annual report, Finacle now powers four out of six old generation private sector banks, five out of eight new generation private sector banks and one out of two public sector banks in India. In FY02, the companyís banking business unit acquired 11 new clients of which four were in India and 7 overseas. Infosys has been putting a lot of effort to develop a world class banking software. The partnership with Sun is another step in that direction.
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