With UK unit turnaround, TCS seeks to grow US insurance biz
Tata Consultancy Services (TCS) has said it has seen a “turnaround” in Diligenta’s fortunes, its UK business process subsidiary, with large wins in recent months, and has begun offering its services to insurance firms in the US, a larger market.
Diligenta was set up in 2005 to offer business process services in the life and pensions insurance industry in the UK. It administers closedbook pensions and annuities for insurers, a model where it gets initial revenue and slows down as policies get closed. Since its $2.2-billion deal in 2011 from the UK insurer, Friends Life, it struggled to get newer deals, prompting the company to place a new Chief Executive Officer Daniel Praveen in 2015.
In September, Diligenta won a 15-year deal with Scottish Widows, the life and pensions business of Lloyds Banking Group, which mandated taking over 1,000 people on its rolls and providing end-to-end policy administration for over 4 million policy holders.
“The growth, what we expected, was lagging behind. We have announced two deals already; we are now processing more than 10 million insurance policies in UK alone and our ambition is to grow it to about 20-25 million policies as quickly as we can, and opportunity is there,” said N Ganapathy Subramaniam, chief operating officer at TCS in an interview last week.