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Banknet India releases – Special Study on IT Procurement in the Financial Sector

Banknet India, an IT focused banking research company has released a Special Study on IT Procurement in the Financial Sector. This study is based on analysis of IT related 129 tenders, RFP, RFI, EOI issued during between 1st January 2003 and 31st December 2003, by the financial sector and guidelines of major organizations and regulatory authorities worldwide. Feedback was also taken from CTO's/Senior IT professionals about procurement practices in their organizations, for the IT related products and services.

According to Anurag Khanna, MD & CEO of Banknet India, "This is first study of its kind and provides fascinating insights on guidelines for procurement, stages in procurement process, types of tenders being floated, operational areas being computerized and the type of work being outsourced by banks, FIs & insurance companies."

The salient findings of the study include:

1. In India there is no central law or defined guidelines for public bodies to follow for their procurement. However to bring about greater transparency in the procurement and tendering processes, Central Vigilance Commission (CVC) has brought out some Guidelines.

2. The Indian commercial banks and other financial bodies normally follow a 3-stage procurement process.

3. The Top choice of financial sector for their IT procurement requirements is through Expression of Interest. RFI/RFP were preferred for 23% of the total requirements.

4. In terms of Hardware, after PCs, the second most popular category was related to note counting machines, kiosks etc.

5. In respect of software, the most sought after was operational software. After operational software, software relating to data warehousing, card management and web-based were most in demand.

6. An increasing preference by banks and other financial bodies to outsource their technology related work; resulted in 28% of the total tenders floated for the outsourcing related requirements.

7. After hardware maintenance, ATM Management was the second choice and constituted 18% of the total outsourcing related tenders.

About Banknet India: Banknet India's, Business Mailer service provides information on IT-software/hardware Tenders, Studies, reports, trends, guidelines, events from BFSI Industry.

Banknet India brings out publications & reports specific to Banking, IT, BPO industry, based on extensive industry research & surveys. Banknet India covers important developments in the Industry through its online Banking and Technology portal, which has more than 50,000 subscribers and 3500+ pages of updated and analytical information.