Indian software firms Tata Consultancy Services and Infosys Technologies have won large multi-million-dollar outsourcing contracts from Dutch bank ABN AMRO.
Stories at Reuters India, Hindu Business Line, Rediff.
Gravy Train Running for Indian IT Outsourcers
Citing an unnamed source, Reuters said the two Indian companies won IT application and development contracts likely to be worth more than $250 million -- among the biggest deals ever for an Indian software company. TCS and Infosys could not be immediately reached for comment.
However, because the ABN Amro deal spans several years, it will generate revenue only in the tens of millions of dollars for each company annually, which means no major impact on expectations, said Gilford Securities analyst Ashish Thadhani. "We obviously view this is as a possible, but will not necessarily change any estimates based on deals of like this because some is baked into expectations going forward," Thadhani said.
Indeed, many analysts had anticipated the ABN Amro contracts, although their size has remained a question. FTN Midwest Research analyst Trip Chowdhry, for instance, had pegged the deal to be worth $100 million for Infosys. UBS analyst Trideep Bhattacharya had estimated the contract could be split into two components, with Infosys winning a portion of the application management worth 150 million to 200 million euros. He also said in a note earlier this month that Infosys might have to add 400 to 700 ABN Amro employees to its payroll.
Satyam and Wipro were not mentioned.