$1.2 bn M&G deal adds to TCS’ acquisition kitty
Continuing its large deal winning streak, Tata Consultancy Services (TCS) on Tuesday said its contract with M&G Prudential, the UK and European savings and investments business of Prudential Plc, has been expanded to make it a $1.2 billion deal.
The 10-year partnership, which was first announced in January, aims to digitally transform M&G Prudential’s business and deliver better service for its UK savings and retirement customers.
The contract size at that time was pegged at $690 million. The agreement has now been expanded to cover an additional 1.8 million customer policies, which will move from M&G Prudential to TCS, bringing the total number of policies covered by the partnership to 5.8 million. It is worth an additional £500 million over the term of the contract, the company said.
The expanded partnership further cements TCS’ position as the market leader in UK life and pension administration, with more than 18 million policies being administered by its BFSI Digital Platform, powered by TCS BaNCS (proprietary TCS banking solution).
Earlier this year, TCS also won a $2 billion transformational deal from US-based Transamerica. In both deals, TCS will transition the entire work on its BaNCs platform to support these policies.
“The BFSI industry is looking for transformation and different revenue streams. Certain parts of the industry are embracing transformation faster, especially in Europe, because they are more challenged. Other parts of the industry are still discovering these areas of transformation,” TCS CEO Rajesh Gopinathan had told Business Standard earlier this year.
He had hinted at a larger number of such collaborative deals as the projects continue to mature.
Around 400 employee roles from M&G Prudential, across a number of UK sites, are expected to be transferred under the TUPE (Transfer of Undertakings) Regulations arrangements to TCS’ FCA regulated, UK subsidiary. A further 183 roles in India are expected to move from M&G Prudential to TCS.
In January, Marks & Spencers signed up TCS as its principal technology partner to help it migrate to the newer digital space and fetch it annual savings of £30 million by 2021-22.