TCS sees a spot for itself in Deutsche Bank tech rejig

Problems at Deutsche Bank, which has decided to slash 18,000 jobs, have been a source of concern for TCS.

BCCL
We have said that capital markets in general there is softness, and in the first quarter has got worse.
MUMBAI: India’s Tata Consultancy Services could benefit from Deutsche Bank’s plan to invest €13 billion in technology to revive its business, but expects to face some short-term pain from the German lender’s moves to restructure operations. Problems at Deutsche Bank, which has decided to slash 18,000 jobs, have been a source of concern for India’s largest IT services company, which had flagged issues in the capital markets and European banking business at its first-quarter results announcement on Tuesday.

TCS said the concerns had grown during the first quarter.

“Their ongoing challenges impact us as a vendor to them. We are both reactively and proactively engaging with them. About the specifics of that announcement, it is still early days because we have to wait and see,” Rajesh Gopinathan, CEO of TCS, told ET.


Deutsche Bank plans to exit most of its investment banking activity to focus on corporate and private banking, and asset management. The bank’s chief executive Christian Sewing said it would invest as much as €13 billion by 2022 in technology and to drive digitisation across all businesses. “We see ourselves as a strategic partner and participating across the full spectrum from the immediate requirements of efficiency and savings to the medium to longer term requirements of transformation that they need to go through,” Gopinathan said.

“We see ourselves as a longterm partner and we will be fully engaged in the whole process”. Infosys and HCL Technologies, too, have large deals with Deutsche Bank. HCL Technologies declined to comment citing the silent period ahead of its quarterly results, while Infosys did not respond to a request seeking comment till the publication of this report.
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“We have said that capital markets in general there is softness, and in the first quarter has got worse. My own belief is that it will continue for a little more time. On the equities and derivatives side, most firms seem to be rethinking their strategies,” said NG Subramaniam, the chief operating officer at TCS.
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