TCS pips Infy to bag Rs 150-crore MP revenue automation contract

Tata Consultancy Services (TCS), the country’s largest information technology (IT) services company, has bagged a Rs 150-crore e-governance contract from the Madhya Pradesh (MP) government.

Other than TCS, Infosys Technologies, which has set up a business unit for such contracts in India, was also in the fray.

Though Infosys emerged as the lowest bidder (L1), the company lost out to TCS on operational ground, as the MP government found the operational expenses quoted by Infosys was higher to TCS, industry sources familiar with the tender process said. “While the price quoted by Infosys was lower, the capex to opex ratio was very high, which was one of the criteria for selection,” the sources said.

A spokesperson at TCS said, “We don’t comment on individual deals.” Infosys could not be reached for comments.

The Madhya Pradesh government is introducing an ‘Integrated Financial Management Information System’ to monitor state’s financial transactions on a real time basis. The software platform to be implemented by TCS will help the state revenue department to develop an integrated solution to automate public provident fund management, human resources and payroll management, and pension management.