IBM Signs Contract with Indian Bank - Analyst Blog

International Business Machines Corp. (IBM) announced the signing of a 10-year information technology (IT) services agreement with Sardar Bhiladwala Pardi People's Co-operative Bank Ltd. (SBPPCB), a leading co-operative bank in Gujarat, India. 

Under the agreement, IBM will provide Managed Continuity Services for server management, network and security management, backup and database management. 

The bank chose IBM for its enhanced Core Banking solution to manage its IT infrastructure requirements from IBM's Global Management Center in Bangalore to achieve growth, customer satisfaction and cost efficiency. Through this win, IBM plans to focus on helping financial services clients. 

For small and midsized businesses (SMBs) with limited IT expertise, IBM’s solution reduces business complexity, resulting in increased efficiency, productivity and lower operating costs. 

The end-to-end managed services provided by IBM will reduce upfront capital expenditure for the Co-operative bank allowing it to spend in an operational expenditure (pay-as-you-go) model over a 10-year period. This model will help the bank to save up to 50% of its capital expenditure on IT infrastructure. 

This is a strategic win for IBM since it will help the company expand its footprint in low cost regions. IBM’s growing strategic alliances in emerging markets position the company for higher growth. 

With revival in technology spending, continuous innovative solutions, increased customer wins and a strong portfolio of products and solutions IBM is well positioned to drive growth. 

We maintain our Neutral rating on IBM.
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