TCS, Capgemini jointly bag Norway Post's $86 mn IT outsourcing contract

Norway Post said it has split the procurement of IT operations and application management services between TCS and Capgemini

India’s biggest IT services company Tata Consultancy Services (TCS) and global IT services and consulting company Capgemini have been awarded IT upgradation contracts worth $43 million each from Norway Post, the Norwegian postal service.

In a release issued on Monday, Norway Post said it has split the procurement of IT operations and application management services between two vendors – TCS and Capgemini.

“The estimated value to each of the suppliers Capgemini and TCS during the contract period is around NOK 250 million,” the release posted on its website, says.

“The new contracts will make it possible to reduce costs considerably and gives us access to relevant expertise from two large and recognised global players. We’ve now paved the way for new and future-oriented IT solutions for Norway Post,” says Morten Stødle, CIO in Posten Norge AS (Norway Post).

While Capgemini employs about 4,500 employees in the Nordic region serving about 103 clients, TCS has around 1,600 employees in the region.

As a part of the contract, TCS will be responsible for delivery of a wide range of application development and support services across Norway Post’s core portfolio of 55 applications. Additionally, TCS has also been entrusted to coordinate and drive the overall transition and transformation programme for Norway Post across multiple vendors, it said in a statement.

On its part, Capgemini will be responsible for delivery of application management and development of core applications, the company said in a statement. It includes outsourcing of central applications, such as ERP and data warehousing, it added.

Norway Post which delivers over 36 million packages and 2.2 billion letters every year is implementing a structured multi-sourcing model to drive efficiency and support their Nordic Integrated business strategy.