Sources instructed TOI that Cognizant, TCS and Wipro have offers with Credit Suisse, amounting jointly to up to $350-400 million yearly. The last slice of the outsourcing pie is shared between Infosys, Tech Mahindra and HCL Tech.
“It’s good to assume there will be change. The way the regulators structured the deal (UBS taking over Credit Suisse) has brought in stability. All the existing work that’s being done in countries, in technology and operations, all of that is continuing as business as usual. In two quarters, we will pitch to them (UBS) how they can leverage synergies,” he mentioned. He expects extra trade from the mixing.
In the March quarter, TCS signed $10 billion in general contract worth, out of which $3 billion got here from banking & monetary services and products. Revenue grew a modest 0.6% in consistent forex in comparison to the previous quarter, weighed by means of banking and fiscal services and products. “After the SVB ,Silicon Valley Bank) collapse, customers became a bit tentative. They want to do projects, but they want to spend wisely. If they don’t do anything in six months, given the pace at which technology changes, they will become a legacy company very quickly. They have deferred a few projects which have impacted our revenue,” he mentioned.
Subramaniam mentioned banks are specializing in cost-optimization by means of simplifying the organisation. “The whole approach is to kill reconciliation. In each bank, there are thousands of people doing reconciliation work in the back office. They don’t need them if they optimize using tech. With newer technologies like generative AI, there are opportunities to co -innovate and cocreate,” he added.
Subramaniam mentioned he does not watch for the chain response that was once pronounced within the banking and fiscal services and products area throughout the good monetary disaster of 2008.
He mentioned the corporate is giving 15-20% increments for most sensible performers, 10-15% for excellent performers, and 5-7% for reasonable performers. “Average hikes are 8-12%. We have rolled out hikes effective April 1, and gave 100% variable pay for last quarter,” he mentioned.