ComBank launches software escrow services
The Commercial Bank of Ceylon, rated internationally as Sri Lanka's
best, has begun the provision of software escrow services, the globally
accepted practice to balance requirements of software vendors with the
needs of users.
With the bank's foray into the sphere to offer the service of
providing software escrow services, software vendors and users can now
employ services of the bank as the neutral third party holding in safe
custody their source codes. Commercial Bank embarked on its first such
transaction for software provided by OpenArc Systems Management (Pvt)
Ltd. to Singer Finance PLC.
Software escrow services provide the software user access to the
source code, which is vital for maintenance purposes of the software, in
an instance in which the vendor is unable to fulfil conditions of the
maintenance agreement, ensuring the safety of the user's investment and
unhindered execution of the maintenance agreement.
Due to the high value of software used for specialised commercial
purposes, many software users now only enter into agreements with
vendors on condition that a neutral third party holds custody of the
source code to mitigate risks, Commercial Bank said. The bank's new
service will thus be an enhancement of convenience to software vendors
and users who are now able to obtain Software Escrow services alongside
banking facilities from Commercial Bank.
"As costly specialised software is now widely being used for
commercial purposes, there is a greater need for software escrow
services," Commercial Bank Head of Corporate Finance Naveen
Sooriyarachchi said. "As trustworthiness and reliability are among the
prime requirements of a neutral third party in such a capacity,
Commercial Bank is ideal for the task, being among the most trusted
financial institutions in Sri Lanka," he said.
"Software escrow services complement our existing product portfolio
and their introduction underline Commercial Bank's commitment to
offering a truly global service by integrating developments in the
international sphere," Sooriyarachchi added.
Escrow services will be available for any type of software from
Commercial Bank. Any software vendor or user who wishes to obtain the
service can contact the Bank's Corporate Finance Unit at its head
office. |