India companies could play a crucial role and earn a sizeable market Merwin Fernandes, vice president & business head of Finacle said.
Finacle currently contributes around Rs 180 crore (Rs 1.8 billion) to the total turnover of Infosys and was on investment mode to consolidate itself in the mature market.
During the first half of current fiscal its revenue had grown up by 112 per cent to $41 million compared to $19.3 million during the first half of last fiscal, he added.
Nearly 55 per cent of sales came from overseas market and Finacle was introduced in 18 new countries last year. Out of the total 91 customers, 34 in India and 57 in overseas.
Fernandes said that most of the banks in the mature market were currently operating on systems introduced in the 1980s and 1990s and were spending a sizeable amount to maintain it with the result the investment inflow into new technology was relatively low.
This however expected to change in the near future. Besides investing heavily on market analysis in these countries, Infosys had also invested over $80 million in research and development to improve its product.
IT spending by 2010 would see an enhanced investment in new technologies and nearly 14 per cent totalling up to $28 billion was expected to be spent on new initiatives and out of this $10 billion would go to the banking platform, he added.
He said Indian vendors have already pitched their stake strong in these markets and Finacle was making an extra effort to consolidate, targeting mid sized and large banks.
He said the growing importance of the mature market looking to new core banking solution could be adjudged by the fact that Oracle had acquired a large chunk of equity in iflex and similarly TCS had recently acquired the Australian core banking solution provider FNS. Such acquisitions add value, he added.
Commenting on the recent wins, he said Finacle had already been firmed up by a large bank in Russia, Australia and Europe.
