- Agreement expected to be completed by second quarter of 2018
- Multi-year agreement worth more than $2 billion, says TCS
- TCS on Thursday posted profit of Rs 6,531 crore in Q3
Tata Consultancy Services (TCS) announced on Friday that it has partnered with Transamerica, a US-based insurance company, in a multi-year agreement worth more than $2 billion in revenues. TCS said the contract was the largest signed by it to date. India's largest outsourcer, TCS, will administer Transamerica's life insurance, annuity, supplemental health insurance and workplace voluntary benefits products and take on administration of over 10 million policies. The agreement, according to TCS, is expected to be completed by the second quarter of 2018.
"TCS was carefully selected because of their significant, ongoing investments in technology and their expertise in the insurance and annuity industry," said Mark Mullin, president and CEO, Transamerica. "TCS will provide valuable administration and quality customer service," he said.
The partnership will also support the US-based company's overall transition to a simplified, cloud-enabled platform for agile new product development, enhanced services, acquisitions, and strategic innovation investments, TCS said. This agreement is expected to lead to annual run-rate savings of approximately $70 million initially - growing to $100 million over time - for Transamerica, TCS noted, adding that the majority is expected to benefit underlying earnings.
"TCS is helping to guide many of today's leading companies through their business 4.0 journeys, in building their digital spines, becoming more agile, creating superior customer experiences, and driving exponential growth," said Rajesh Gopinathan, CEO and managing director, TCS.
TCS on Thursday reported a net profit of Rs 6,531 crore in the October-December quarter, as against Rs. 6,446 crore in the previous quarter. Income from operations rose to Rs. 30,904 crore, as compared to Rs. 30,541 crore in the September quarter. The revenue and profit numbers were in line with market estimates.
At 1:43 pm, shares in TCS were trading 0.80 per cent lower at Rs 2,766 on the BSE, whose benchmark Sensex index was down 5 points at 34,498.