IDBI Intech, the software subsidiary of state-run IDBI Bank, on Tuesday said it plans to grow into a full-fledged banking software and services firm with a Rs 500-crore turnover over the next five years.

The company also plans to do more business overseas by working with technology partners rather than spend money to set up offices abroad, IDBI Intech MD and CEO Sanjay Sharma said in Mumbai.

"Last year we had a turnover of Rs 140 crore. We expect to close this fiscal with Rs 180 crore. In the next five years, we intend to be a banking software and services company with a turnover of Rs 500 crore," Sharma said.

His optimism comes partly from the Khandelwal Committee recommendation that called upon public sector banks (PSBs) to outsource their non-core banking services to cut employee cost and better align their efficiencies.

IDBI Intech earns around 60 per cent of its revenue from banking software products, while services bring in the remaining 40 per cent, Sharma said. "We are now in the process of entering management consultancy as well. Of the total revenue, 45 per cent comes from the parent IDBI Bank."

At present, the firm has over 8,000 contract employees doing back office non-core functions for banks, Sharma said. "We have also developed non-core banking products whose intellectual property rights are fully owned by us. We have developed these products in-house."

These products relate to internal audit functions and anti-money laundering, among others. The firm is developing a product called Automated Data Flow in partnership with Microsoft and SAS, besides a Java- based smartphone product to enable NEFT transactions, he said. "We sell services along with our products. This includes customisation for various customers."