The deal, worth an estimated £1.5 billion (about $1.9 billion), sees India’s largest IT services company deploy the TCS BaNCS platform to employ 1 million Nest employees, according to an exchange filing on Wednesday. management services will be digitized. This will provide personalized retirement solutions to his 12 million members of the online pension plan.
The deal, valued at £840m, was signed for an initial ten-year term, with an optional extension of up to five years and the possibility of canceling for a further three years. A second TCS statement puts the total contract value at £1.5bn for the full 18-year term.
“This new agreement with TCS will focus on maximizing advances in technology and data analytics to deliver personalized service to each and every customer,” said a Nest spokesperson for BQ Prime. said in an e-mailed response to a question on “This takes us to the next level. A truly digital Nest provides world-class services that enable millions of people to lead better retirement lives.”
“This deal fully outsources the construction, delivery and operation of our defined contribution pension plan administration services,” she said.
The TCS and Nest deal is a 10-year, $2 billion contract that TCS and US-based insurer Transamerica have scrapped in just over five years, citing “the current macro environment and their respective business priorities.” It is significant because the announcement was made just a few days later. However, the impact will be minimal as TCS has collected 85% of the transaction value as revenue over the past five years.
It is also the fourth major contract signed in the UK by India’s largest outsourcing company so far this year. It follows Marks & Spencer’s April agreement, its February agreement and earlier this month agreements for teachers’ pension schemes in England and Wales.
Nest was established by the UK Government under the Pensions Act 2008 to make automatic enrollment of workers as easy as possible. This is a workplace pension plan and similar to the Employee Provident Fund in India, most people join through their employer. Nest first introduced his TCS in 2011, then built a digital self-enrollment pension plan for the platform.
Vivekanand Rangopal, President of BFSI Products & Platforms at TCS, said in a statement: “This partnership has resulted in a very successful pension plan for UK workers. It has become a global benchmark.” . The expansion of the partnership will provide a compelling omnichannel membership experience for a new generation of workers entering the workplace, he said.
On Wednesday, Tata Consultancy Services shares rose 0.94 per cent to Rs 3,257.45 per share, despite the benchmark Sensex ending the day up 0.31 per cent to 63,523.15 points.
