HCLTech Extends Deal Worth $278 Mn With German Cooperative apoBank

IT services company HCLTech has revealed an expansion of its deal with Deutsche Apotheker- und Ärztebank eG (apoBank), Germany’s largest cooperative primary bank. The deal is valued at USD 278 million (approximately Rs 2,300 crore) and spans over a duration of 7.5 years, as stated in a regulatory filing by HCLTech.

The partnership between apoBank and HCLTech initially commenced in 2021 with a focus on application services. However, the new contract will be a significant expansion in their relationship.

“The new contract will result in a significant expansion in the relationship. We look forward to working with apoBank to help them serve their customers by leveraging our comprehensive portfolio of managed infrastructure and cloud services and our longstanding experience with Avaloq,” said Sudip Lahiri, executive vice president and head of financial services, Europe at HCLTech.

Avaloq, a Swiss-based firm, specialises in the development and provision of the Avaloq Banking Suite software, catering specifically to core banking needs. In the year 2022, HCLTech made a strategic move by acquiring Confinale, a Swiss company renowned for its expertise in digital banking and wealth management consulting. Confinale also served as an implementation partner for Avaloq solutions.

“In addition to world-class capabilities in IT infrastructure and cloud managed services, HCLTech has extensive Avaloq expertise and deep understanding of apoBank…In this respect, it was a logical step to consolidate the IT services with HCLTech,” said Thomas Runge, COO and Member of Executive Board, apoBank.