Home Business TCS bags another mega contract worth $690 million

TCS bags another mega contract worth $690 million


(G.N.S) Dt. 17

New Delhi

India’s largest IT services firm TCS or Tata Consultancy Services (TCS) has bagged another big outsourcing contract. TCS on Tuesday said it has signed an over GBP 500 million ($690 million) deal with M&G Prudential, the UK and European savings and investments business of Prudential plc. Under the contract, TCS will digitally transform M&G Prudential’s business and deliver enhanced service for its UK savings and retirement customers, TCS said in a statement. “The value of this agreement exceeds GBP 500 million ($690 million) over 10 years and covers the support of over 4 million customer policies,” it added.

According to a statement by M&G Prudential, the administration of over four million life and pensions contracts will move from Capita (Prudential’s business partner for last 10 years) to TCS’ Diligenta.

“About 1,100 Capita roles across a number of UK sites are expected to be transferred under the TUPE (Transfer of Undertakings for the Protection of Employment) arrangements to Diligenta. A further 700 roles in India are also expected to move from Capita to TCS,” it added.

TCS has over the last few weeks announced a slew of large client wins including American insurer Transamerica (over $2 billion), television rating measurement firm Nielsen and British retailer Marks & Spencer.

TCS shares were up over 2 per cent today, after rising nearly 4 per cent on Tuesday. Even though IT stocks underperformed the benchmark Sensex in 2017, the possibility of a pick-up in tech-spending during the current year could help improve investor sentiment towards these stocks, says a report from Morgan Stanley..

“IT (large cap stocks) underperformed the Sensex in 2017 as revenue growth was tepid while investment in the business and a strong rupee kept margins in check,” global brokerage Morgan Stanley said in a report. “We believe a turnaround in IT spending is imminent, which could quickly turn sentiment on these stocks. While structurally the sector faces risks from automation and a slower pace of market share gains from global vendors, we believe a cyclical rally could be in the offing,” it added. The brokerage says an improvement in BFSI/retail verticals could help the industry leader TCS and hence it has upgraded it to equal weight.

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