Bangalore: Nasdaq-listed software services firm iGate Corp., which recently named former Infosys Ltd veteran Ashok Vemuri as its chief executive, won a new outsourcing contract from UBS AG at a time the Swiss bank is looking to cut costs in a tough operating environment.

The deal value is estimated to be about $200 million, according to two people familiar with the development, who requested anonymity.

iGate, which follows an outcome-based pricing model for all its clients, will manage back-office financial data systems for UBS.

Discussions on the deal, the first major contract signed by iGate since Vemuri came on board, had started when Phaneesh Murthy was the CEO of iGate, according to the people. In May, iGate sacked Murthy for failing to disclose a relationship with a subordinate employee.

“As part of our industrialization efforts, we are simplifying our processes to increase effectiveness and reduce operational risk and cost. Moving towards a managed service model for the supply of financial instrument data is a good example of industrialization in action at UBS," Adrian Boyd, managing director at UBS, said in a statement.

Last month, Switzerland’s largest bank UBS posted a third quarter profit, but warned that its future earnings targets could be delayed, dragged down mainly by potential costs of settling legal cases.

“This strategic initiative has significant benefits for UBS including improved standardisation, reduced risk, operational complexity and cost," iGate said.

In September, iGate named Vemuri the company’s new CEO after a four-month hunt during which other candidates who had been approached for the top job had declined to take up the assignment, highlighting concerns such as iGate’s huge $700 million debt, unsettled tax claims and lawsuits filed against it.

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