SINGAPORE, 14 JUNE 2010 - The Singapore Exchange (SGX) has signed what's described as one of the biggest IT infrastructure agreements in the history of the Lion City's financial services industry, with a S$110 million (US$78.64 million) dollar deal with giant India enterprise HCL Technologies.
The landmark five-year deal, to be fully in place by February 2011, was signed today at Singapore's Raffles Hotel and is claimed to be part of a technology transformation to provide the SGX with one of the world's fastest trading engines with the lowest trading latency.
The planned SGX IT transformation comes at a highly competitive time for the world's stock exchanges, when just 10 milliseconds of latency in trading could result in a 10 per cent drop in revenues.
The SGX is Asia's second largest exchange and one of the world's biggest.
HCL will provide SGX with infrastructure support and management services as part of the exchange's S$250 million (US$178.73 million) Reach initiative, which includes the establishment of a new generation data centre offering co-location facilities and seamlessly connecting Singapore with trading communities in global financial hubs.
A strategic partner
SGX executive vice president and CIO Bob Caisley said HCL a 30-year-old Indian enterprise now worth US$5 billion - is an important strategic partner for enabling the Reach initiative.
The implementation of Reach will ensure that SGX's position as a leading listing venue for international issuers and the unparalleled trading venue for Asian products is fortified and future proofed, Caisley said.
HCL focuses on what it calls transformational outsourcing', offering a portfolio of services from software-led IT solutions, remote infrastructure management, engineering and R&D services, plus business process optimisation.
Under the outsourcing deal, HCL will be responsible for SGX's end-to-end IT infrastructure, from dual data centre architecture, exchange and e-mail archiving, server virtualisation to network consolidation.
HCL's senior vice president and worldwide head of system integration sales, infrastructure services division, Kiran Bhagwanani, said their aim was to enable the transformation of data centre and network operations at SGX to bring in enhanced efficiency and clear business benefits.
We have a lineage of long-lasting successful engagements of similar nature that involve critical service propositions, Bhagwanani said.
We are equally committed to ensuring superior performance year-on-year for SGX and its members, having been entrusted with the responsibility of managing its large and complex infrastructure.
Sign up for CIO Asia eNewsletters.