TCS bags $2.2-bn deal from UK pension provider Friends Life
This is TCS second-largest deal after the $2.5-billion (Rs12,542-crore) acquistion of Citigroup Global Services. The company won the deal through its fully-owned subsidiary Diligenta, which specialises in servicing the life and pensions sector. HT reports. Top IT dealsbusiness Updated: Nov 10, 2011 02:14 IST
India’s largest software services exporter Tata Consultancy Services on Wednesday announced a $2.2-billion (Rs11,037-crore) order from UK-based pension provider Friends Life.
This is TCS second-largest deal after the $2.5-billion (Rs12,542-crore) acquistion of Citigroup Global Services. The company won the deal through its fully-owned subsidiary Diligenta, a leading business process outsourcing unit in the UK, which specialises in servicing the life and pensions sector.
TCS and Diligenta will deliver IT infrastructure and IT services to Friends Life.
“This is a very significant deal for TCS as it will increase our non-linear revenues and we will charge the client on per transaction basis,” said N Chandrasekaran, CEO and MD, TCS. “The 15-year deal with Friends Life comes into effect from March 1, 2012 under which we will process about 8 million life and pension policies annually on the BaNCS platform, which TCS has developed especially for the life and pensions market.”Chandrasekaran, who is also the chairman of Diligenta, said that revenues will start to flow in from the next fiscal year and even though the margins will be slightly lower in the initial years, things will even out in the long run.
Under the deal, about 1,900 Friends Life employees will be transferred to Diligenta.
The deal would bring in at least $150 million of guaranteed annual revenue for TCS, said an analyst at Angel broking.
The deal is significant as it comes at a time when Europe is facing a severe economic crisis. “The macro-economic factors are still worrisome, but most corporations are turning to technology to streamline their businesses and become more efficient,” said Chandrasekaran.