CBA distances Tata from crown jewels

CBA distances Tata from crown jewels

Summary: Tata Consultancy Services (TCS) has snagged work on the Commonwealth Bank's core banking system replacement project, but a spokesperson for the bank today insisted Indian outsourcing firm was not a key partner like SAP or Accenture.

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TOPICS: IBM, Banking
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Tata Consultancy Services (TCS) has snagged work on the Commonwealth Bank's core banking system replacement project, but a spokesperson for the bank today insisted Indian outsourcing firm was not a key partner like SAP or Accenture.

CommBank today confirmed that TCS had been selected to do some application service work for the bank for its five-year $580 million core banking modernisation project it announced in April.

"TCS have limited involvement in providing applications services that will be leveraged by the core banking modernisation program," a spokesperson for CBA told ZDNet.com.au today.

CommBank was keen to distance TCS from the main part of its core banking system refresh, highlighting that it was not a strategic partner at the same level as SAP or Accenture. TCS was able to gain a spot on the high-profile project via its position on the bank's panel of vendors for CommBank's application maintenance work, worth around $280 million a year, which it announced in December last year.

TCS was selected as one of three vendors under the panel, which also included fellow Indian outsourcing firm HCL and IBM as part of CommBank's move towards multi-sourcing, following its decision to wind back its relationship with EDS.

"Other CBA vendors including applications services vendors will be requested at times to provide services under existing contractual agreements," the spokesperson said, adding that TCS's involvement had nothing to do with cost-cutting.

Topics: IBM, Banking

Liam Tung

About Liam Tung

Liam Tung is an Australian business technology journalist living a few too many Swedish miles north of Stockholm for his liking. He gained a bachelors degree in economics and arts (cultural studies) at Sydney's Macquarie University, but hacked (without Norse or malicious code for that matter) his way into a career as an enterprise tech, security and telecommunications journalist with ZDNet Australia. These days Liam is a full time freelance technology journalist who writes for several publications.

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5 comments
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  • Accenture

    Who's to say TCS wouldn't do a better job than the very expensive Accenture? Word is they haven't delivered for Telstra (amongst others)and have a history of cost overruns, poor business integration and late delivery. At the end of the day they are all foreigners sending our cash off shore.
    anonymous
  • RE: Accenture

    I have done work with TCS... trust me... they are the worst thing ever...
    anonymous
  • RE: Accenture

    Accenture is failing to deliver on a number of SAP projects in Aus and Asia.
    So it's a case of the "lesser evil"!
    I'm beginning to think all the major integrators lack quality - mainly due to poor mgt and poor quality resources (a result of cost cutting).
    anonymous
  • Good on you TCS

    TCS have demostrated abilities woking with major banks in the U.S, TCS is a very matured organization in delivering worldclass cost efficient professional services. TCS have an unparalled competency with legacy mainframe systems which is what is still used in most of the major banks around the world, only a companty with a high pool of talented professionals can deliver to the aging sytems in application development and supporting of legacy environment.
    Hope this will help CWB to increase their profit s and help customer avoid paying too much fees due to losses created by the inplant IT and project managers.
    anonymous
  • Accenture: bad by design

    I worked for Accenture with Telstra about 10 years ago. This was before Enron so they still called themselves Arthur Anderson.
    Projects are *deliberately* extended to the maximum the client's finances will allow.
    It is not mismanagement, it is unscupulous profiteering.
    The management that hires them is incompetant I guess but the project overruns are definately by design.
    anonymous