The IT industry is exiting its
worst ever year and is on track to return to growth in 2010 with
spending forecast to total $3.3 trillion, a 3.3 percent increase
from 2009. But, according to consultancy Gartner, the market will
not recover to 2008 revenue levels before 2012, reports

Douglas
Blakey.

Information technology spending in 2009 will be down 5.2 percent on
2008 levels according to a report from IT research firm Gartner,
but is set to rise by 3.3 percent in 2010 to reach $3.3
trillion.

According to Peter Sondergaard, the firm’s
global head of research: “2010 is about balancing the focus on
cost, risk, and growth. For more than 50 percent of CIOs the IT
budget will be 0 percent or less in growth terms. It will only
slowly improve in 2011.”

He said the hardware market had struggled more
than other segments with worldwide spending forecast to total $317
billion in 2009, a 16.5 percent decline with 2010 spending expected
to be flat.

Telecom spending, set to fall 4 percent in
2009 at around $1.9 trillion, will rise by 3.2 percent while IT
services spending of $781 billion in 2009 is forecast to grow 4.5
percent in 2010.

Leading vendors’ recent results have tended to
back up Gartner’s downbeat assessment for 2009: in an interim
management statement for the three months to September, Misys
reported a 14 percent fall in orders at its banking unit while NCR
posted an 81 percent fall in third quarter earnings.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

And while processor TSYS reported a resilient
set of third quarter results on 28 October with total revenue of
$432.3 million, an increase of 4.9 percent over the second quarter
of 2009, with net earnings up 3 percent at $55 million, revenue and
net income were down by 1.6 percent and 14 percent respectively,
compared to the year-ago-quarter.

Swiss-based vendor Temenos bucked the trend,
reporting an increase in third-quarter earnings with profits up 81
percent to $20.3 million on the same period last year.

“I am very pleased with this set of results.
Against a tough comparative quarter, we grew underlying licences,
while operating profit increased strongly in both absolute and
percentage terms,” said Temenos CEO Andreas Andreades.

IT Contracts

RBI Fintech DealWatch tracks
recent major technology contract wins with a focus on the retail
financial services industry as well as fintech mergers and
acquisitions and innovative new product launches

Country

Participants

Type/value

Details

Date

Georgia

Bank of Georgia, Temenos

Core banking contract win

Bank of Georgia has selected the Temenos T24
core banking system to consolidate its retail, corporate and
private banking operations with the aim of improving efficiency and
customer service.

28 Oct

UK

Lloyds TSB, Barclays, HSBC, Unisys

Outsourcing contract extension

UK banks Lloyds TSB, Barclays and HSBC have
signed a five year outsourcing contract extension with IT provider
Unisys for a combined total of £315 million ($516 million). The
venture covers cheque processing, image archiving and other
back-office functions.

27 Oct

China

China Minsheng Bank, TSYS, China UnionPay

Credit card processing contract renewal

Outsourcing firm Tsys has announced the
renewal of a contract which will see China UnionPay Data services,
TSYS’ joint venture with China UnionPay, continue to provide credit
card processing services for China Minsheng Bank.

27 Oct

India

Axis Bank, Polaris Software

Processing contract win

India’s Axis Bank has partnered with local IT
vendor Polaris Software to centralise its banking processes in
cards, cheque processing and trade finance. According to the
vendor, it has reduced cheque processing time and tightened risk
management and control at the bank by increased process
standardisation and faster turnaround of customer products and
services.

26 Oct

US

First Derivatives, Reference Data Factory

Acquisition

US-based First Derivatives has acquired data
management vendor Reference Data Factory for an initial
consideration of $2.5 million, with an additional $7.5 million
earn-out provision, to be paid in cash over a three-year period
according to sales.

26 Oct

US

NetSpend, Acxiom Corporation

Customer analytics contract extension

Prepaid card provider NetSpend has agreed a
three-year customer data integration contract extension with Acxiom
following a successful six month trial.

26 Oct

The Netherlands

Fortis Bank Nederland, Temenos

Core banking implementation

Fortis Bank Nederland has implemented
Temenos’ T24 system at its Singapore office as part of its plans to
deploy a new banking infrastructure across its international
network. The bank is now working to roll out T24 in the UK, US,
Hong Kong and Western Europe, and aims to complete the project by
the third quarter of 2010.

26 Oct

Australia

Commonwealth Bank of Australia,
IdenTrust

Security contract win

Commonwealth Bank of Australia (CBA) is to
deploy identity authentication technology from US-based digital
security provider IdenTrust to authorise selected online banking
transactions. Digital identities issued by CBA will be recognised
across the IdenTrust trust network, spanning banks and corporate
customers in 175 countries.

26 Oct

Japan

Bank of Tokyo-Mitsubishi UFJ, IBM

IT services contract

Japan’s Bank of Tokyo-Mitsubishi UFJ has
agreed a deal to implement IBM’s smart business desktop cloud
service that gives end-users access to information they need
remotely, from various devices through a centrally managed
computing environment.

23 Oct

UK

Virgin Money, LogRhythm

Security contract win

Virgin Money’s charitable arm Virgin Money
Giving has implemented log management, log analysis and event
management security systems from LogRhythm.

22 Oct

Kuwait

National Bank of Kuwait, Visa, Zain,
ViVOtech

Contactless contract win

National Bank of Kuwait has teamed up with
telecoms supplier Zain, Visa and fintech vendor ViVOtech on a
six-month near field communication-based mobile payments
project.

21 Oct

Europe

Citigroup, Experian

Payments systems contract

Information services company Experian has
teamed up with Citigroup to provide an automated International Bank
Account Number and Bank Identifier Code conversion and validation
service for SEPA-compliant cross-border payments. The service will
be available across all 31 countries in the SEPA area and also
extend to Citi customers initiating payments to and from the SEPA
region.

21 Oct

Qatar

Qatar Central Bank, ProgressSoft

Payments systems contract

Qatar Central Bank (QCB) is to utilise
payments systems software from ProgressSoft which provides an
end-to-end clearing cycle through which remittances and presentment
messages can be exchanged between QCB and local banks in real
time.

21 Oct

UK

Bradford & Bingley, HML

Outsourcing contract extension

Nationalised mortgage bank Bradford &
Bingley has extended its mortgage servicing and administration
outsourcing contract with HML to 2012.

21 Oct

Malaysia

Callataÿ & Wouters,
IA Group

Joint venture

Core banking vendor Callataÿ & Wouters
has teamed up with Malaysian management consulting firm IA Group to
develop an Islamic banking solution for the region and global
market. According to the vendor, Islamic banking assets in Malaysia
accounted for 17.4 percent of total banking assets in the local
financial sector at the end of 2008.

21 Oct

Austria

Erste Bank,
Orc Software

Trading systems
contract win

Austria’s Erste Bank has selected a trading
system from Orc Software to support the bank’s future electronic
trading needs including its plans involving automated trading.

19 Oct

Pakistan

Dubai Islamic Bank, TPS

Online banking systems win

The Pakistan unit of Dubai Islamic Bank is to
deploy local IT vendor TPS’ Prism online banking suite, including
hardware based multi-factor authentication, as well as online bill
presentment and payment options via account and credit cards.

19 Oct

Asia-Pacific

HCL Technologies, Microsoft

Joint venture

IT services firm HCL Technologies has tied up
with Microsoft to provide retail banking solutions for banks in
Asia-Pacific, including sales and CRM systems.

19 Oct

Brazil

Alliance Data Systems, Companhia Brasileira
De Servicos De Marketing

Stake acquisition

LoyaltyOne, a subsidiary of US-headquartered
loyalty and marketing firm Alliance Data Systems, has acquired a 29
percent stake in Brazilian-based Companhia Brasileira De Servicos
De Marketing (Dotz). Since setting up in 2000, Dotz has signed up
more than 200,000 active participants, 50 online sponsors and a
rewards catalogue featuring more than 6,000 products and
services.

19 Oct

Belgium

ING Belgium, NCR

Automation contract win

ING Belgium is to instal NCR’s SelfServTM 34
ATMs at its new-concept Proxi branches, first unveiled in 2007,
featuring an open-plan layout with no counters or security glass,
in order to facilitate interaction between customers and bank
staff. According to NCR, the ATMs’ built-in recycling and cash
dispense capabilities were key factors in the contract award, the
most extensive deployment of cash-recycling ATMs in Europe to
date.

19 Oct

India

Polaris Software Lab, Laser Soft
Infosystems

Acquisition

India’s Polaris Software Lab has agreed an
all cash deal worth around $11 million to snap up banking software
firm Laser Soft Infosystems. With more than 50 customers including
State Bank of India, ICICI and Mashreq, Laser Soft specialises in
core banking, trade finance, treasury and cash management services
to financial services firms in emerging markets.

15 Oct

India

Central Bank of India, Rêv Worldwide

Joint venture

Prepaid solutions provider Rêv Worldwide has
teamed up with public sector lender Central Bank of India to plan a
series of new payment products targeted at the unbanked sector.

15 Oct

India

UBS, Cognizant

Sale of business unit

UBS is to sell its Indian-based business
processing outsourcing unit to Cognizant in a deal that also
involves the vendor providing BPO, knowledge process outsourcing,
IT and remote infrastructure management services to the Swiss bank
around the world. UBS had been linked with the sale since the first
half of the year. Financial terms were not disclosed.

15 Oct

Portugal

Banco Espírito Santo, Actimize

Security contract win

Portugal-based Banco Espírito Santo is to
deploy risk management software from NICE Systems subsidiary
Actimize to help the bank tackle insider trading and market
abuse.

7 Oct

UK

Zurich Connect, Experian

Marketing software contract win

Zurich Connect, the insurer’s direct arm, is
to implement marketing software, data and analytics from global
information services company Experian to develop and deploy
targeted and personalised marketing campaigns across multiple
channels in the UK.

7 Oct

US

IBM, Wilshire Credit Corporation

Sale of business unit

IBM has agreed a deal to acquire the assets
of Bank of America’s mortgage servicing arm Wilshire Credit
Corporation, including its mortgage servicing platform. Financial
terms were not disclosed.

6 Oct

Bulgaria

SEP Bulgaria, Allianz Bank, Postbank, KFC,
Globul

M-payments joint venture

Payment services provider SEP Bulgaria has
teamed up with Allianz Bank, Postbank, telecoms supplier Globul and
fast food retailer KFC to launch a mobile payments trial.

30 Sep

The Netherlands

Chordiant Software, Atos Consulting

Joint venture

Customer experience software vendor Chordiant
Software and Atos Consulting, the business consulting unit of Atos
Origin, have agreed a sales, marketing and services partnership
with the aim of expanding delivery of Chordiant’s solutions in the
Netherlands.

30 Sep

Germany

Deutsche Bank, Avaya

Telecommunications contract win

Deutsche Bank is to deploy telecoms systems
from Avaya as part of a global telecommunications consolidation
project covering 3,100 buildings in 72 countries. The deal includes
internet protocol telephony and applications that enable
click-to-dial from computers, extend office calls, and directory
access to mobile phones. According to the vendor, the unified
communications architecture will be installed over the next five
years.

29 Sep

Source: RBI