Hi All Asked Jeff about the article about CBA's plan to cull the...

Hi All

Asked Jeff about the article about CBA's plan to cull the number of technology partners etc and this was his response hope it may help in some way.

Hi *****
I believe you are referring to CBA's IT outsourcing to india which involves dozens of the 700-strong cyber security division.

A few points based on the news article:
-this involves all of IT,not cybersecurity specifically
-not everything will be done offshore
-the main areas for offshoring are managed services and operational/commodity/lower skill activities e.g testing monitoring and not project based work
-only a portion (10%? 30%?)of the cybersecurity team will be affected

Our work with CBA is mainly project work (not managed services);and is higher skilled work(architecture and design)of latest technology solutions-which are not easily found.We are okay to remain in this area
(which is higher margin business).

As such,we don't believe that we are impacted by CBA's move.

On a slightly different note,we too are pursuing an offshore managed services strategy.We intend to quickly grow the managed services business such that we have the sale to open an off-shore delivery centre.For this business,we are not targeting the likes of CBA and the big 4 banks because we are too small to serve them (notice the article states that CBA has 700 jobs in the cybersecurity unit!!!).Most likely,they will be served by the likes of Accenture,IBM,Tata,etc.Our target for this is the 2nd tier banks,and large(but not mega)corporations.