TCS' Vandrevala to head UK subsidiary Diligenta

India’ largest information technology services company Tata Consultancy Services (TCS) today said Phiroz A Vandrevala would take over as the managing director and vice-chairman of Diligenta — its UK subsidiary. With this, he ceases to be the executive director of the company with immediate effect.

Vandrewala, who has been an executive board member since 2002, has been appointed as an additional director of the company in non-independent and non-executive capacity with immediate effect. N Chandrasekaran, CEO & MD, TCS will take over as the Chairman of Diligenta.

“According Tata policy, a person cannot be chairman and MD of a company, hence, he will now be vice-chairman and MD of Diligenta. As for he not continuing as the executive director, one needs to be the employee of the company. Since he now joins Diligenta, he will not be the Executive Director,” said a spokesperson of the company.

Vandrewala was also the Head, Global Corporate Affairs and Chairman Diligenta.

Diligenta for the financial year 2009-10 had reported revenue of Rs 456.2 crore and had a loss of Rs 56 crore. The company had said the UK subsidiary would break even in 2011-12.

“We feel that Diligenta is a part of our non-linear initiative growth strategy. So far, Diligenta was focused on the UK region, but going ahead we want to broaden our services. Since Vandrewala has been closely associated with Diligenta he has been given the mandate for its growth,” said the spokesperson. As a part of the this change, Vandrewala will now be based out of the UK.

In September 2010, Diligenta bagged a new contract from Old Mutual International, while its deal with Phoenix Group has been extended by six years. These engagements were to generate revenues worth £250 million for Diligenta over the next six years.

Diligenta was established in 2005 to specialise in the provision of business process outsourcing (BPO) services for the UK life and pensions industry.

It currently employs around 1,000 people. Diligenta entered the UK life and pensions marketplace in 2006 by securing a £486 million deal with The Phoenix Group (formerly known as the Pearl Group), making it the second largest firm in the UK to service this sector.

In June 2008, Diligenta secured a second client when it won a contract to deliver BPO services to Sun Life Financial of Canada's UK operations (SLF UK). The services, commenced in May 2008, were estimated to be worth over £100 million over the life of the contract and involved administering a further 500,000 life and pensions policies.

CMC share touches 52-week high

CMC’s, a Tata Consultancy Services (TCS) subsidiary, share price touched a 52 week high during intra-day at Rs 2,780 per share. This was up 24.8 per cent from the previous days close. The company’s stock closed at Rs 2,693 up 20.9 per cent from previous close. When contacted, a senior official of the company denied having any knowledge for the spike in the stock price.