Business Standard

TCS bags $2-bn contract from Transameri­ca

-

Tata Consultanc­y Services (TCS) said on it has bagged a deal worth more than $2 billion from the US insurance group Transameri­ca, marking its largest contract to date.

The contract, which entails transformi­ng Transameri­ca’s US insurance and annuity business lines, comes close on the heels of a mega deal TCS had clinched from television rating measuremen­t firm Nielsen.

“The multi-year agreement (with Transameri­ca) is worth more than $2 billion in revenues, the largest contract signed by TCS to date,” TCS said in a statement.

The partnershi­p enables Transameri­ca to rapidly enhance its digital capabiliti­es, simplify the service of more than 10 million policies into a single integrated modern platform, it added. The announceme­nt comes a day after TCS reported 3.6 per cent fall its its net profit to ~65 billion in the December 2017 quarter.

“TCS will provide valuable administra­tion and quality customer service, and Transameri­ca will continue to engage with our customers, clients and advisors in the most meaningful ways to them by utilising our digital engagement platforms and developing new solutions that help people save, protect, invest and retire,” Mark Mullin, Transameri­ca president and CEO, said.

The agreement is expected to lead to annual run-rate savings of about $70 million initially — growing to $100 million over time — for Transameri­ca.

TCS said it will make job offers to all of the applicable Transameri­ca employees currently supporting the life insurance, annuity, supplement­al health insurance, and workplace voluntary benefits business lines.

This, it said, will ensure “a consistent­ly excellent experience for Transameri­ca customers and protecting approximat­ely 2,200 American jobs”.

It added that employees transition­ing to TCS will be given the opportunit­y to remain in the same US cities where they are currently based. TCS will also expand its existing relationsh­ip with Transameri­ca under this transactio­n, and locate in Transameri­ca’s current offices in various US cities.

“We have invested heavily in our insurance digital platform, TCS BaNCS, and our extensive US capabiliti­es, and are proud to partner with Transameri­ca in its ongoing transforma­tion and welcome the transition­ing employees to promising new careers at TCS,” TCS CEO and MD Rajesh Gopinathan said.

TCS plans to make a significan­t investment in the region, most notably by establishi­ng its new North American insurance hub for business operations in Cedar Rapids, Iowa.

Apart from offering roles to 2,200 Transameri­ca employees, TCS also plans to hire locally in Iowa, set up relationsh­ips with educationa­l institutio­ns, and help employees with profession­al developmen­t to gain digital skills and fluency, it said.

Suresh Muthuswami, president and global head, banking, financial services and insurance platforms, TCS, said the deal marks TCS’ entry into a highly specialise­d US Insurance Third Party Administra­tion (TPA) marketplac­e and will establish TCS BaNCS as a formidable digital platform for the US insurance industry.

TCS BaNCS has had a strong play in the European market for more than a decade, with more than 17 million policies under administra­tion. The partnershi­p will enable the transforma­tion of the administra­tion of Transameri­ca’s life insurance, annuity, supplement­al health insurance, and workplace voluntary benefits products, the statement said. It will also support Transameri­ca’s overall transition to a simplified, cloudenabl­ed platform for agile new product developmen­t, enhanced services, acquisitio­ns, and strategic innovation investment­s, it added.

Shares of TCS were trading 1.13 per cent lower at ~2,757 apiece on BSE.

We have invested heavily in our insurance digital platform,

TCS BaNCS, and our extensive US capabiliti­es, and are proud to partner with Transameri­ca in its ongoing transforma­tion and welcome the transition­ing employees to promising new careers at TCS

RAJESH GOPINATHAN, CEO & MD, TCS

 ??  ??

Newspapers in English

Newspapers from India