TCS bags UK's Network Rail deal
In a sign of thawing investment climate in Europe, Britain's nodal railway company Network Rail has chosen Tata Consultancy Service, Cognizant and three other companies to design, build and manage its IT infrastructure. HT reports.business Updated: Jun 05, 2013 21:29 IST
In a sign of thawing investment climate in Europe, Britain's nodal railway company Network Rail has chosen Tata Consultancy Service, Cognizant and three other companies to design, build and manage its IT infrastructure.
While the size and breakup of the deal was not announced, industry experts estimate it at about £350-million (R3,050) crore.
The other companies chosen are Accenture, BAE Systems and Detica.
Network Rail is implementing a structured multi-sourcing model to invest in a customer-centric IT strategy over four years, the company said in a statement here.
Indian software companies, which have been facing flat demand in the continent which accounts for around 30% of their revenues, would take heart from the four-year contract.
"With more than 270 individual IT suppliers, Network Rail manages a variety of systems of varying complexity, including some that were designed as far back as the 1970s," the company's statement said.
Network Rail is the owner and operator of Britain's railway infrastructure, which includes tracks, signals, tunnels, bridges, level crossings and stations.
"This is no commitment, zero-sum framework agreement," Network Rail said.
"There is potential for a certain level of money to change hands, but equally, the companies concerned know they may not get that work."
"What this (deal) does is share the delivery risk more equally between Network Rail and our suppliers."