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TCS bags $2 bn deal to transform Transamerica's insurance & annuities admin

Company to preserve 2200 Transamerica jobs

Romita Majumdar  |  Mumbai 

Photo: Reuters

Tata Consultancy Services (TCS) on Thursday announced that it has entered into an agreement with Transamerica, a leading provider of life insurance, retirement and investment solutions, to enable the transformation of administration of its US insurance and annuity business lines. 

The partnership enables to rapidly enhance its digital capabilities, simplify the service of more than 10 million policies into a single integrated modern platform, and drive greater sustainable growth opportunities through superior customer experiences. The multi-year agreement is worth more than $2 billion in revenues, and is expected to be completed by the second quarter of 2018.

The partnership will enable the transformation of the administration of Transamerica’s life insurance, annuity, supplemental health insurance, and workplace voluntary benefits products. It will also support the company’s overall transition to a simplified, cloud-enabled platform for agile new product development, enhanced services, acquisitions, and strategic innovation investments. This agreement is expected to lead to annual run-rate savings of approximately $70 million initially – growing to $100 million over time – for The majority is expected to benefit underlying earnings.

 “is helping to guide many of today’s leading through their business 4.0 journeys, in building their digital spines, becoming more agile, creating superior customer experiences, and driving exponential growth,” said Rajesh Gopinathan, CEO and Managing Director of Tata Consultancy Services. “We have invested heavily in our insurance digital platform, BaNCS, and our extensive US capabilities, and are proud to partner with in its ongoing transformation and welcome the transitioning employees to promising new careers at

will make job offers to all of the applicable employees currently supporting the life insurance, annuity, supplemental health insurance, and workplace voluntary benefits business lines, ensuring a consistently excellent experience for customers and protecting approximately 2,200 American Employees transitioning to will be given the opportunity to remain in the same US cities where they are currently based. will also expand its existing relationship with under this transaction, and locate in Transamerica’s current offices in various US cities.

continues to put our customers at the forefront of everything we do. I’m very excited to embark on this partnership with TCS, whose transformation and technology innovation capabilities will supplement our focus on improving our customers’ experience in a digitally enabled way. This supports meaningful growth in all business lines, including insurance and annuities, and advances our competitive positioning. was carefully selected because of their significant, ongoing investments in technology and their expertise in the insurance and annuity industry,” said Mark Mullin, President & Chief Executive Officer. “TCS’ core competencies complement ours. will provide valuable administration and quality customer service, and will continue to engage with our customers, clients and advisors in the most meaningful ways to them by utilizing our digital engagement platforms and developing new solutions that help people save, protect, invest and retire.” 

plans to make a significant investment in the region, most notably by establishing its new North American insurance hub for business operations in Cedar Rapids, Iowa. Beyond offering roles to 2,200 employees across US cities, plans to hire locally in Iowa, set up relationships with educational institutions, and help employees with professional development to gain digital skills and fluency. As one of America's 50 most community minded organizations, will also work with state and local leaders, and community organizations to bring its flagship education programs, such as goIT and Ignite My Future In School to students, educators, schools, and communities across Iowa.


First Published: Sat, January 13 2018. 00:50 IST