One for All and All for One: A Case Study of State Bank of India, International

by Bart Narter, March 15, 2010
Case Studies
Asia-Pacific

Abstract

The State Bank of India (SBI) is one of the largest banks in the world, and it was able to consolidate its international data centers from twenty-five to three to one with a concomitant drop in costs.

In a new report, One for All and All for One: A Case Study of State Bank of India, International, Celent documents State Bank of India’s selection and implementation of Infosys Finacle running on HP-UX to run its international footprint, including 25 countries. The consolidation of platforms, data centers, and business processes has allowed the bank to reduce its IT headcount by an order of magnitude.

The first step was standardizing on the Finacle platform and migrating the bank’s global network to this platform. The second step was consolidating data centers from three, in the US, UK, and India, down to one in India while upgrading the entire system. But this drop in costs didn’t mean a drop in service. The bank was able to offer more products, get them out faster on the new platform, and roll them out globally if so desired.

“The State Bank of India won in many ways. They were able to drop costs, while gaining functionality and improving customer service,” says Bart Narter, Senior Vice President of Celent’s Banking Group and author of the report. “It’s a win-win-win for the bank, its product offerings, and its customers.”

This report examines the State Bank of India, the size of the organization, and the businesses it conducts in its domestic market. Celent reviews the decision process to migrate to a new core system on a new platform. The report then outlines the business benefits for State Bank of India as a result of the migration.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

3

About State Bank of India

4

 

How Big Is SBI on a Global Scale?

5

SBI International IT: Yesterday and Today

8

 

The Decision to Migrate Core Systems

8

 

The Selection Process

9

What Kind of Business Does the Bank Engage In?

10

Product Technology and Functionality

11

Relationship with Vendors

12

Implementation Milestones

15

Platform Migration and Consolidation

18

 

Finance 10

20

 

Scalability

20

Business Benefits

21

Cost Savings

22

 

Costs

23

Conclusion

24

Thank You

25

Leveraging Celent’s Expertise

26

 

Support for Financial Institutions

26

 

Support for Vendors

26

Related Celent Research

28

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