Nordic exchange group OMX has extended its agreement with HCL Technologies Ltd (HCL), the Indian IT outsourcing company, and will as a result remain in several businesses it had expected to exit.
HCL will now take on the responsibility for support, maintenance and development of systems for securities management technologies aimed at banks and brokers, allowing OMX to stay in some banking and brokerage businesses it had expected to shed.
“We have excellent experiences of working together with HCL over the last years,” says Hans-Ole Jochumsen, President Business Area Information Services & New Markets, OMX. “Their proven technical capabilities and customer focus is a good basis for extending our relationship to the next level. We believe this partnership will strengthen the offering to our customers using systems for securities back-office.”
In August 2005, OMX divested itself of operations aimed at banks and brokerages. Following the agreement with HCL, only the UK operations in securities administration services are still on the “discontinued” list. The changes are effective, in accounting terms, from 1January2007.
Rajeev Sawhney, Corporate Vice President, HCL, adds that he is pleased to extend the relationship with OMX. “Our specialist skill-set and sector experience make us an ideal partner and we will be helping OMX to drive through benefits such as a more efficient and secure service,” he says. “The agreement highlights HCL’s expertise in the financial services sector and our continued commitment to developing value-add technology solutions to meet the specific needs of our customers.”
OMX says the businesses being rescued by the HCL deal had sales of SEK 160 million and costs of SEK 195 million in 2006. It is expected to show a profit during 2007, following the agreement with HCL. For the fourth quarter 2006, the business’ revenue was SEK 43 million while costs were SEK 49 million, levels that are expected to remain in the first quarter of 2007.