India's largest technology company, Tata Consultancy Services, has bagged a $2.2-billion (Rs 11,037 crore) outsourcing contract — the biggest tech deal for an Indian firm — from the UK-based pension provider, Friends Life.
Under the deal, TCS and its UK arm, Diligenta, will provide technology infrastructure solutions to the clients of Friends Life. TCS said on Wednesday the 15-year deal also re-established India's position as a technology hotspot, offering state-of-the-art services.
"India still enjoys the cheaper-better-faster advantage compared to other emerging outsourcing hubs, such as the Philippines. We are cost-competitive, and the quality and speed of our delivery is far better," Kiran Karnik, information technology veteran and former president of National Association of Software and Service Companies (Nasscom), told HT.
TCS, which clocked a Rs 29,275-crore revenue in 2010-11, won a $2.5-billion (about Rs 12,500 crore) contract in 2008 from Citigroup Inc. It was part of TCS' acquisition of Citigroup's India-based back-office division.
Expectedly, investors, anxious about India's software industry's ability to bag global deals during the slowdown, cheered the move. TCS shares closed 1.8% up at R1,123 , on a day when the 30-share benchmark Sensex closed 1.2%, down at 17, 362.10.
Signs of a slowdown, at least in the technology sector - one of the factors that drove millions of middle class Indians' aspirations -- are not yet visible. "We are by far the most premier technology off-shoring destination, there is no doubt about that and this deal only reinforces this view," said Karnik.