iGATE Corp says it has secured the “largest” contract from Swiss banking giant UBS for managing data services, a sign of the growing influence of Indian outsourcing firms in Europe. iGATE did not disclose the financial details of the deal, but Indian newspapers put the contract value at about $200 million.
This is the biggest deal iGATE has received since it devised a “pay for results only” business model, under which clients pay only after measuring the result of the service rather than paying for hours and labor costs.
“The deal envisages UBS migrating to a globally managed service for instrument data mastering across asset classes, using Markit enterprise data management platform and transforming its operations using our framework,” iGATE stated in a press release.
The California-based firm has its largest offshore development center in India’s outsourcing capital Bangalore. Former Infosys Director Ashok Vemuri is the chief executive of the company.
Under the deal, Markit and iGATE would help UBS streamline data management and improve data quality while reducing costs.
“This is a landmark initiative in financial services with an increasing number of financial institutions seeking to consolidate and standardize their instrument data operations and IT across various business units,” said Derek Kemp, Executive Vice President and Head of EMEA region, iGATE.
UBS said moving to a managed service model for supplying financial instrument data would simplify its processes and reduce operational risk. The Swiss bank has offices in over 50 countries, with about 35% of its employees working in the Americas, 36% in Switzerland, and 17% in the rest of Europe.
The Indian firm first gained prominence when it bought the much larger Patni Computer Systems for $1.2 billion in 2011. Patni, which has headquarters in Massachusetts and Mumbai and an office in Milpitas, is a pioneer in India’s IT industry.