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TCS bags over $2 bn deal from US insurance group Transamerica

Press Trust of India  |  New Delhi 

India's largest IT firm Tata Consultancy Services (TCS) today said it has bagged an over USD 2-billion deal from to transform the latter's US and annuity business lines. The partnership enables to rapidly enhance its capabilities, simplify the service of more than 10 million policies into a single integrated modern platform, said in a statement. The multi-year agreement is worth more than USD 2 billion in revenues, and is expected to be completed by the second quarter of 2018, it added. The announcement comes a day after reported 3.6 per cent fall its its net profit to Rs 6,531 crore in the December 2017 quarter. The Mumbai-headquartered company had posted a net profit of Rs 6,778 crore in the October-December quarter of the previous fiscal. "will provide valuable administration and quality customer service, and will continue to engage with our customers, clients and in the most meaningful ways to them by utilising our engagement platforms and developing new solutions that help people save, protect, invest and retire," Mark Mullin, President and CEO, said. The agreement is expected to lead to annual run-rate savings of about USD 70 million initially growing to USD 100 million over time for Transamerica, the statement said. said it will make to all of the applicable employees currently supporting the life insurance, annuity, supplemental health insurance, and workplace voluntary benefits business lines. This, it said, will ensure "a consistently excellent experience for customers and protecting approximately 2,200 American jobs". It added that 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. "We have invested heavily in our 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 TCS," and MD Rajesh Gopinathan said. plans to make a significant investment in the region, most notably by establishing its new North American hub for business operations in Cedar Rapids, Apart from offering roles to 2,200 employees, also plans to hire locally in Iowa, set up relationships with educational institutions, and help employees with professional development to gain skills and fluency, it said. President and Global Head, Banking, Financial Services and Platforms Suresh Muthuswami said the deal marks entry into a highly specialised US marketplace and will establish BaNCS as a formidable platform for the US industry. BaNCS has had a strong play in the European market for more than a decade, with more than 17 million policies under administration. The partnership will enable the transformation of the administration of Transamericas life insurance, annuity, supplemental health insurance, and workplace voluntary benefits products, the statement said. It will also support Transamerica's overall transition to a simplified, cloud-enabled platform for agile new product development, enhanced services, acquisitions, and strategic innovation investments, it added. Shares of were trading 1.13 per cent lower at Rs 2,757 apiece on BSE.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 11:15 IST
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