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Rs 3,800 crore win for TCS
Tata Consultancy Services (TCS) has bagged a $847mn contract
(about Rs 3,800 crore) over 12 years from the UK-based insurance company, the
Pearl Group. Under the outsourcing-cum-acquisition deal, the British group will
transfer its entire existing business processes to a new TCS subsidiary proposed
to be set up in Britain to manage the new acquisition.
This decision comes after a year-long selection process. The agreement will
mean that the new TCS subsidiary will employ about 950 of Pearl Group’s
current 1,100 staff, with about 150 continuing with Pearl.
The new subsidiary will specialise in BPO for life and pension
businesses, starting with Pearl Group’s closed books portfolio. It will
also focus on offering similar services to other insurance companies, presenting
it with an opportunity for significant future growth as the BPO is rolled out
across the life assurance industry. This deal will generate multi-million dollar
revenues as a result of creating a new platform beyond IT services.
Commenting on this strategic initiative, S Ramadorai, CEO and Managing Director
said, “This deal validates our strategy of pioneering the next generation
of BPO opportunities. Our extensive experience of working in the insurance industry
together with our excellence in technology will help us emerge as a significant
player in life assurance and pensions administration services and enable us
to continue our strong growth momentum.”
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