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TCS eyes core banking market with FNS buy-out

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CIOL Bureau
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BANGALORE: Tata Consultancy Services (TCS), which derives around $750 million of its revenues from the banking and financial services segment, strengthened its portfolio of offerings with the acquisition of Financial Network Services (FNS) for $26 million.

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This buy marks TCS' foray into the core banking market where other Indian vendors like Infosys-Finacle and i-flex Solutions are active.

S Mahalingam, CFO, TCS said, “ We have been an implementation partner for FNS for the Central Bank of India and State Bank of India projects. We have a deep insight into the product thanks to the implementations.”

He said that TCS had already implemented FNS core banking in 5000 branches and hopes to complete 5000 more branches soon. “This will be one of the largest core banking implementations in the world,” he said.

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TCS has acquired 100 percent shareholding of the company, which has 190 employees spread across its offices in Australia, Manila, Dubai, South Africa and London. FNS' Core Banking Solution has been installed in over 115 banks spread over 35 countries and its clients include tier one and tier two banks in emerging markets in Europe, Asia, Australia and Africa.

NG Subramaniam, head, global banking practice, TCS said: “We see a significant opportunity in the market for core banking replacement. We will now be positioned well to provide system integration, and support services along with the product to all existing customers.”

He also said that the FNS addition to the company's existing financial portfolio of products like Quartz and custody product -NCS, would provide a robust, end-to-end capability in the BFSI space.

TCS head honcho S. Ramadorai, was quoted saying in a press statement, "FNS, TCS' first major international acquisition is great value as well as strategic in nature. This will give us a number of new global banking customers in Asia, Europe and South Africa".

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