Top technology services firms are offering payment deferrals, discounts of up to 20% and other sweeteners to some U.S. banks to keep their business as the pandemic forces Wall Street to cut tech budgets, according to executives involved in the talks.
FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri/File Photo
The aim is to secure new contracts as well as to keep the relationships with the banks ticking over so that they can be expanded once more post-pandemic, they added. Major IT outsourcing contracts, which include software maintenance, cloud computing and analytics, are worth several hundreds of millions of dollars and typically stretch over many years.
Research and advisory firm Gartner estimates the banking and financial services industry’s spending globally on IT and information security will fall 5.6% in 2020 to $502 billion. The top 10 U.S. banks collectively spend roughly $70 billion on technology annually, according to public statements and executives.
IBM and Wipro declined to comment on any pricing talks with clients. But IBM said its broad client base provided a measure of stability in terms of recurring revenues and profit in “these challenging times”.Banks are not, however, slashing tech spending as heavily as sectors such as travel, hospitality and retail. Many are also investing in technology that helps staff work from home.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Virginia Tech awards one of its therapy dogs an honorary doctorate degreeLike most universities, Virginia Tech's College of Veterinary Medicine celebrated the class of 2020 with an online commencement ceremony. But unlike other schools, they included one very good boy in the graduating class: a dog named Moose.
Read more »
SoftBank Posts $9 Billion Loss for Year, Hit by Poor Tech InvestmentsSoftBank recorded a net loss of $9 billion for the fiscal year ended in March, the worst results in its nearly four-decade history, as huge losses at its $100 billion Vision Fund and other investments threw into question its aggressive strategy of funding technology startups.
Read more »
China tensions and chip sell-off present buying opportunity in three stocks, tech analyst saysChips stocks have been caught in the middle of another U.S.-China showdown. It shouldn't be a major worry for investors, says one technical analyst.
Read more »
For the First Time, Four Black Women Soloists Occupy the Hot 100's Top TwoDespite a tight race for No. 1, Doja Cat, Nicki Minaj, Megan Thee Stallion and Beyoncé combine for the first week in which four black female soloists occupy the chart&39;s top two rungs.
Read more »
Wehrlein goes top with second virtual Formula E win in a rowGermany's Pascal Wehrlein took his second successive virtual Formula E win for Mahindra on Saturday to replace compatriot Maximilian Guenther in the overall lead of the Race at Home Challenge.
Read more »