A New Report From Aite Group
Large IT Services Vendors are on a Collision Trajectory with U.S. Core Banking Processors
A new report from Aite Group, LLC provides a map of 26 IT service providers serving the global banking industry. The report reviews vendors’ presence from a geographic, service and banking area standpoint, and highlights key factors of revenue performance in IT services.
Aite Group suggests that the biggest U.S. core banking processors and large IT services vendors are on a collision trajectory. With the consolidation of core banking and payment processing assets now well under way, core banking processors are seeking to further entrench themselves among large financial institutions. They are looking beyond processing and software licensing to grow revenues. Their next stop: the multi-billion dollar IT services market.
In the meantime, facing a tough buyer environment in the large bank segment, as well as increased competition, large IT services vendors are eyeing smaller institutions and smaller deals, which increasingly pits them against core banking processors.
"The current recession is forcing large IT services vendors and U.S. core banking processors to eye each other’s lunch," says Gwenn Bézard, research director with Aite Group and co-author of this report. "In the short-term, all types of providers of IT services will fight hard over the low-hanging fruit of the recession, including conversion jobs spun by the 750 bank failures or acquisitions we expect in 2009 in the United States alone."
The report is based on a global survey of 26 providers of IT services to the financial services industry: Cap Gemini, Cognizant, CSC, Diebold, Exigen, Fidelity National Information Services (FNIS), Fiserv, Harland, HCL, Infosys, Jack Henry, L&T Infotech, Logica, Mastek, Metavante, Neoris, NS Solutions, Oracle, Patni, Polaris, Sapient, SunGard, Syntel, TCS, Unisys and Wipro. It also references Accenture, Atos Origin, CGI, Deloitte, EZE Castle, HP/EDS, IBM, Keane and Tech Mahindra’s Satyam.
This 83-page Impact Report contains 59 figures. Clients of Aite Group’s Retail and Wholesale Banking services can download the report by going to the Aite Group web site.