State: MELBOURNE, VICTORIA
Sector: INFORMATION TECHNOLOGY
ANZ INVESTS IN INDIAN IT SECTOR
As a condition of its takeover of the Grindlays network in India, ANZ established a software firm near Bangalore in 1989. This made ANZ one of the first foreign firms to establish such an operation in India, but for much of the 1990s, ANZ conducted little business from this company, called Index Technology.
However, from the middle of the 1990s, the extraordinary growth and success of the Indian IT sector made ANZ again look at how to use this asset. When it withdrew from its Grindlaysí banking involvement in 2000, ANZ maintained its ownership of this subsidiary. Today, the firm employs about 450 people, which comprises about 20 per cent of ANZís technology staff around the world. It plans to expand this number to about 500 by the end of 2002. These staff provide solutions for ANZís internal IT needs and work closely with ANZís Australian and New Zealand IT teams to develop financial services software products.
ANZ plans to expand the work of its Bangalore subsidiary by partnering with other financial services companies and financial services software firms in Asia, Europe and the United States. ANZ anticipates its Bangalore operation will be a key part of its strategy to leverage its intellectual capital in the development of new market opportunities.
ANZ learnt many lessons in developing this software firm. They found the central and Karnataka governments helpful and pro-active when establishing and developing their operation. Job turnover in the Indian software industry is high and ANZ found it could not compete on remuneration alone. ANZ has taken care to nurture and develop its workforce, resulting in a stable base of skills and experience. The bank has also established extensive infrastructure links, particularly for telecommunications and power, to ensure uninterrupted operation. Finally, maintaining good government relations has been essential to this subsidiaryís success.
Source: ANZ Bank, 2001.