There is an agreement between Tata Consultancy Services and deutsche bank that bank will sell its IT unit to TCS. The idea behind selling is to help the job cutting target by the bank and saves a lot of amount of their technology expenses. This is the ambition of chief executive officer Christian Sewing. The two companies finalize the sale of postbank system AG by the end of the year or it depends on the formalities that how much time it will take to complete the whole agreement on the statement of bank. The bank will take a hit of about 120 million euros ($140million). The bank will be benefited with a lot of money and the TCSwill be conquering the IT world with the advancement of technology and more user efficient experience than ever before witnessed. While the price tag on the deal is a symbolic one Euro, it still benefits Deutsche bank because the lender can save on further redundancy costs while offering long term job prospects for PB system. The deal is favorable by bank and it is a very smart step taken by the bank.
A person briefed on the matter said all these things will drive to anew world of business and economy. The lender will continue to pay for PB system services similar to the inter company agreements currently in place, the person said, the system gives a whole lot of automated experience with 24*7 IT support and resolve any issue whenever you want because handling big transaction may need some support. Asia biggest software exporter Tata Consultancy Services in the domain of software exporter market will take over PB system’s 1500 employee in Germany in the deal. Sewing last year unveiled a restricting plan centered on cutting 18000 jobs, with about half of those expected in Germany. Its largest lender recently dissolved the formerly separated subsidiary postbank AG and its now trying to wring hundreds of millions of euros in cost saving from eliminating duplication. As part of that effort it is merging postbank’s formerly separate IT operations with those of the parent company, which will ultimately render the services provided by PB systems redundant for the bank. As making software which has same function like bank will be more helpful and beneficial. Bank can now spend that amount on different things like spending it on client acquisition process and so it will raise their fund and so to get more customers on the doors of bank.
The employment will eventually increase for the TCSas they need more advance level skilled employees and so the huge amount of the cost of bank is saved and hence it is used for charity or any other useful purpose. Tata Consultancy Services which has more than 450000 employees across the world and $22 billion in annual revenue in 2008 paid and $505 million to acquire citigroupback office unit in what was then its biggest acquisition. More than 100 German companies get service from them. It is a very important deal that solidifies our position in Germany, already one of our fastest growing markets. TCS can leverage the banking skill sets of postbank employees to push for further growth.