TCS likely to bag outsourcing contract from Danish insurer Tryg

Experts value contract around $250 million

India's largest information technologies (IT) services company, Tata Consultancy Services is likely to enter into a four-year deal with Dannish insurer Tryg, as the latter has terminated its IT operating agreement with Computer Sciences Corporation (CSC) effective August 1, 2014.

“Tryg expects to enter into a new operating agreement with TCS. The agreement will run for a minimum of four years and ensure more modern and sustainable IT operations in Tryg with an economy meeting the previously announced cost-saving targets,” Tryg said in a notice on its website.

According to analysts, the deal may be valued at around $200-250 million ( Rs 1235 - Rs 1545 crore).

Tryg is the second largest general insurer in the Nordic region, and has presence across Denmark, Norway and Sweden. According to the information available on the company's website, it has around 3,800 employees.

In 2011, the New York Stock Exchange-listed CSC had signed a seven-year IT outsourcing contract renewal with Tryg worth $348 million. Under this contract, CSC was given the mandate to provide IT infrastructure services including help-desk, mainframe, midrange, network, web hosting, project work, print and distributed computing among others.