Australian banking and financial systems software developer Solace has begun negotiations over the provision of applications outsourcing services to cut-price home finance provider RAMS Home Loans. If the deal can be consummated it is expected to be worth up to $A15 million a year, according to Robert Edge, managing director of Solace.
The 10-year deal under negotiation would require Solace to deploy, host and manage users's access to RAMS' banking and finance applications from a centrally managed facility.
"This is a significant move for Solace towards being a major application service provider, ensuring not only cost savings but also infrastructure efficiencies for major Australian businesses," Edge claimed.
The deal is also a significant change in the close relationship between Solace and RAMS, which purchased and began using Solace's RSB product in 1998, and extended its contract in mid-2000 to cater for the Solace Enterprise Banking System Solution, which included the GLOBUS banking system and CAEMS product for collection, risk and event management. That $A7 million expansion deal was regarded as "a strategic venture" that would allow RAMS to ramp up an aggressive e-business strategy. By November 2000 RAMS had become the first user in Australia to go live with the GLOBUS software, and final delivery of the EBSS is scheduled for March.