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Carreker
Corporation Press Release - August
19, 2004
Carretek Awarded Three-Year Offshoring
Contract to Transform Selected
Operations Functions for US-Based
Company
Client savings of 40 percent
to 50 percent expected in reduced
per-item costs
Arrangement includes unique processes and technology
to guard customer privacy and comply with processing
deadlines
DALLAS, TEXAS (August 19,
2004) — Carretek LLC, a transformational
business processing outsourcer for
transaction processing, jointly owned
by Carreker Corporation (a leading
provider of technology and consulting
solutions for the financial services
industry: Nasdaq CANI) and Majesco
Software Inc. (a subsidiary of Mastek
Limited, a leading global outsourcing
company: National Stock Exchange,
India: MASTEK), announced today that
Carretek has been awarded a three-year
offshoring agreement with a US-based
company. The client, whose identity
was not disclosed, expects to realize
cost savings in the range of 40 percent
to 50 percent.
A key aspect of the agreement was
the development of unique processes
and technology to process transactions
in near real-time, to guard customer
and company privacy, and to comply
with regulatory deadlines for processing
timeliness.
The agreement, the first for Carretek,
is a “co-sourcing” arrangement,
under which the client retains key
customer contact, product, operations,
control, and technology responsibilities
while Carretek provides business
process expertise and offshore functions,
as well as transition support, program
management, ongoing delivery services,
and business continuity services.
The agreement includes a stated intention
to expand the number of functions
offshored over the next six-to-twelve
months.
To ensure compliance with laws and
regulations concerning customer privacy,
security, and timeliness of processing,
Carretek has adopted three key sets
of processes. First, regarding staffing
and training, Carretek has replicated
the client’s processes and
controls as much as possible, screening
for the same characteristics and
adopting similar training regimens.
Second, regarding control of customer
information, the Carretek process
ensures that the information is never
resident in India, but remains under
the control of the client, with screened
and trained staff having access to
the information only for the duration
of the function being performed.
Third, with regard to timeliness,
Carretek has created workflows and
processes that ensure Carretek functions
are performed accurately and reintegrated
into the client’s processing
workflows in order to meet regulator
and customer deadlines for posting
and balancing.
Said Jay Mehaffey, executive vice
president of Carretek, “By
solving these issues of customer
privacy, timeliness, and control,
Carretek can free transaction processing
from many of the old constraints
of time and place, transforming the
processes in the course of offshoring
them. As a result, our client can
leverage the global work force at
this critical period when competitive
and market trends are pressuring
institutions to reduce their costs
beyond the power of traditional cost
management practices. Carretek has
designed and built specific product
offerings targeted to transaction
processing functions for this express
purpose.”
Ketan Mehta, director of Carretek
and co-founder of Mastek, said, “Realizing
the significant benefit potential
in offshoring transaction operations
requires solid, transaction-specific
expertise and offshoring experience.
Carretek clients can be confident
they are partnering with an organization
that has deep domain expertise in
the business, technology and regulatory
environment, a discipline of control
and security, a proven change management
process, demonstrated competence
in people and process management
in India, and a record of delivering
results reliably day after day.”
J. D. (Denny) Carreker, chairman
and CEO of Carreker Corporation said, “With
this agreement, this client, which
we have served for more than two
decades with a variety of technology
and consulting solutions, is confirming
their confidence in our ability to
help them maintain a leadership position
in their operations.”
“This agreement validates
the strategic effort we launched
more than a year ago to respond to
the business process outsourcing
needs in the transaction processing
business,” said Sudhakar Ram,
CEO of Mastek. “Carretek combines
Mastek’s focus on quality and
operational excellence with Carreker’s
domain expertise and technologies
in transaction processing, making
this model unique in the Indian business
process outsourcing industry and
transforming how business will be
conducted in the 21st century.”
Forrester Research recently increased
its projections for offshoring of
U.S. jobs by 40 percent. They now
expect 830,000, or 1.6 percent of
U.S. jobs, to move offshore by the
end of 2005.
The National Association of Software
and Service Companies (Nasscom, the
Indian technology industry trade
body) expects India's exports of
software and services to jump more
than 30 percent to $16 billion in
the current year ending next March.
About Carretek
Carretek was formed in May 2003 as
a partnership between Carreker
Corporation and Mastek. For more
information, visit www.carretek.com.
Carretek offers companies the opportunity
to significantly reduce costs while
maintaining high quality standards
for real time and near real time
payment and transaction operations
by combining domain expertise with
state of the art information security,
imaging technology, process reengineering
and the cost efficiencies of a
global workforce.
About Carreker Corporation
Carreker Corporation improves earnings
for financial institutions around
the world. The Company’s
integrated consulting and software
solutions are designed to increase
clients’ revenues and reduce
their expenses, while improving
security and increasing the value
of their customer relationships.
Carreker provides products and
services to more than 250 clients
in the United States, Canada, the
United Kingdom, Ireland, continental
Europe, Australia, New Zealand,
South Africa, South America, Mexico,
and the Caribbean. Clients include
the full range of community, regional
and large banks, among them more
than 75 of the largest 100 banks
in the United States. Headquartered
in Dallas, Texas since 1978, Carreker
Corporation has offices in London
and Sydney. For more information,
visit www.carreker.com.
About Mastek
Mastek, a US $ 91 million publicly
held, global IT application outsourcing
company with global operations,
that delivers cost effective quality
solutions as per the customized
requirements of Fortune 1000 organizations
worldwide. With its principal offshore
delivery facility based at Mumbai,
India, Mastek operates across US,
Europe, Japan and Asia Pacific
regions. Incorporated in 1982,
Mastek has been in the forefront
of technology, which along with
proven methodologies and processes,
increase IT value generation to
its customers through onsite and
offshore deliveries. For more information,
visit www.mastek.com.
Forward Looking Statement for
Carreker Corporation - Except for
historical information, the statements
in this release, including statements
regarding future financial performance,
contain forward-looking statements
within the meaning of the federal
securities laws. These statements
are subject to numerous risks and
uncertainties that could cause
actual results to differ materially,
including but not limited to the
volatility in the Company’s
common stock price, as well as
the risks and uncertainties arising
out of economic, competitive, governmental
and technological factors affecting
the Company’s operations,
markets, services, products and
prices. For further information
concerning certain of these risks
and uncertainties, see under the
caption “Forward Looking
Statements and Risk Factors” in
the Company’s most recent
Form 10-K for the year ended January
31, 2004. We assume no obligation
to update or revise any forward-looking
statements, whether as a result
of new information, future events
or otherwise, except as may be
required by law.
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