Continuing with its large deal winning streak, Tata Consultancy Services (TCS), India’s largest IT services company on Tuesday said that its contract with M&G Prudential, the UK and European savings and investments business of Prudential plc, has been expanded to make it a $1.2 billion deal.
The 10-year partnership, which was first announced in January this year, aimed at digitally transforming M&G Prudential’s business and delivering an enhanced service for its UK savings and retirement customers. The contract size at that time as pegged at $690 million. The agreement has now been expanded to cover an additional 1.8 million customer policies which will move from M&G Prudential to TCS, bringing the total number of policies covered by the partnership to 5.8 million, and is worth an additional £500 million ($668 million USD) over the term of the contract, the company said.
The expanded partnership further cements TCS’ position as the market leader in UK life and pension administration, with more than 18 million policies being administered by its BFSI Digital Platform, powered by TCS BaNCS (the proprietary TCS banking solution).
TCS new office space.Earlier this year, TCS also won a $2 billion transformational deal from US based insurance major Transamerica. In both the deals, TCS will transition the entire work on its BaNCs platform to support these policies. In the UK, TCS controls the majority of the market share in processing insurance policies and has entered the US with the Transamerica deal.
“The BFSI industry is looking for transformation and different revenue streams. Certain parts of the industry are embracing transformation at a faster pace, especially in Europe, because they are more challenged. While other parts of the industry are still discovering these areas of transformation,” TCS CEO Rajesh Gopinathan had told Business Standard earlier this year. He had hinted at a larger number of such collaborative deals in the future as the projects continue to mature.
Tata Consultancy Services, TCSAround 400 employee roles from M&G Prudential across a number of UK sites are expected to be transferred under the TUPE (Transfer of Undertakings) Regulations arrangements to TCS’ FCA-regulated, UK subsidiary. A further 183 roles in India are also expected to move from M&G Prudential to TCS.
The company had announced previously that about 1,100 roles from the incumbent supplier across a number of UK sites are expected to be transferred while a further 700 roles in India are also expected to move from the incumbent supplier to TCS.
In January, UK's Marks & Spencers signed up TCS as its principal technology partner to help it migrate to the newer digital space that will fetch it annual savings of 30 million pounds by 2021-22. TCS is supposed to take over 250 in-house employees of M&S on its rolls.
In December last year, it existing client Nielsen re-engaged TCS in a $2.25 billion deal that promises shift towards digital and reduces costs over a ten year period.
TCS shares closed 1.7 per cent higher at Rs 1781 on Tuesday.