India's biggest IT services company, Tata Consultancy Services (TCS), has bagged a $2.25-billion outsourcing contract from Nielsen, a television rating measurement firm. The partnership, signed in October this year, is a renewal of TCS' existing collaboration with Nielsen. The two companies had struck a 10-year deal in 2008 for $1.2 billion. Under the new deal, the terms of the agreement have been extended for an additional five years so as to expire on December 31, 2025, with three one-year renewal options granted to Nielsen, the TV rating company said in a regulatory filing to the US Securities and Exchange Commission (SEC).
"Nielsen has committed to purchase services from TCS from the Effective Date through the remaining term of the Agreement (the 'Minimum Commitment') in the amount of $2.25 billion, including a commitment to purchase at least $320 million in services per year from 2017 through 2020, $186 million in services per year from 2021 through 2024, and $139.5 million in services in 2025," it added.
The filing stated that the Mumbai-based firm will globally provide Nielsen with professional services relating to IT - including application development and maintenance - BPO, client service knowledge process outsourcing, management sciences, analytics, and financial planning.