IT services major Tata Consultancy Services and Deutsche Bank AG announces the agreement in which the latter has agreed to sell 100 percent share of Postbank Systems and TCS is expecting to close this deal by the end of the year. This initiative has been taken to secure the Postbank employees, with this acquisition about 1500 employees of Postbank systems would become a part of TCS.

Commenting on this acquisition, Deutsche Bank’s Chief Technology, Data, and Innovation Officer, Leukert has stated that the bank is consolidating the IT platform for its retail banking brand Postbank into the Deutsche Bank platform.

He further continued stating that TCS is one of the most trusted IT services partners for Deutsche Bank, with this acquisition the companies bond would strengthen further. Also, they are confident that TCS would be an ideal owner for Postbank systems.

In Leukert's words, “With this transaction, we have agreed on a structure that serves all parties’ interests. It provides clarity to Postbank Systems staff and gives them the opportunity to become part of the success and growth story of TCS.”

Tata Consultancy is one of Asia’s biggest software exporter by market value that is all set to take over Postbank’s 1,500 employees in Germany in the deal. However, Deutsche Bank’s CEO Christian Sewing was quite ambitious about job cutting last year, as a measure to restructure the organization thus was focused on cutting 18,000 jobs out of which half of those were in Germany.

However, the plan has hit a roadblock post the pandemic leading to a short moratorium on dismissals, additionally, the COVID outbreak made people less willing to consider a job change.

Sources say that the deal would benefit the bank as it could save on the redundancy costs in the future and would also provide a long-term job perspective to Postbank System staff.

In a statement, NG Subramaniam, Chief Operating Officer, TCS states, “We are pleased to deepen our long-standing partnership with Deutsche Bank, continue to help accelerate their digital transformation, and to acquire market-specific capabilities in the banking domain."