Wednesday, October 19, 2005

Landmark Deal for TCS

Tata Consultancy Services (TCS) has won a $ 847 million landmark deal from the UK based insurance company, Pearl Group. The deal will be executed in 12 years of time and revenues from the deal will start flowing from the last quarter of this fiscal.

This deal is a momentous occasion for TCS as well as for the Indian IT industry in terms of the structuring of the deal. In the ABN Amro bank deal also TCS had its share to the tune of $ 250 million. But the new thing that figured in these deals was the movement of people. In the ABN Amro bank deal about 2000 people from bank’s IT division had moved to the five IT companies to which deal was awarded. TCS also absorbed a few people as part of the deal.

In this deal of Pearl Group, TCS is going to take over the entire business processes of Pearl and also 950 employees in UK. This will lead to the creation of a new company in UK. It will be a BPO that will handle all the life and pension businesses beginning with Pearl Group’s closed books portfolio.

S Ramadorai, MD and CEO of TCS said that this deal validates our strategy of pioneering the next generation of BPO. The biggest advantage of this deal is that TCS gets an entry into the European life insurance market. The Pearl Group has a base of 25 billion pounds and has 2.5 million subscribers. Also the Pearl Group has said that they have no objection in the new company doing business for other firms in Europe.

Indian IT companies have not been very strong in the European region. Lately the deals like ABN AMRO and the latest one of Pearl Group can give the IT companies a foot hold even in this emerging market which is considered to be the second biggest after North America.

1 comment:

chandu said...

hello there!stumbled across ur blog by chance!!I am not sure if u remember me..we met at the cellar of Lifestyle building long back!:D
We then got to chat abt TAPMI for a while.anyways,howz work at Polaris?