"The 10-year deal envisages digital transformation of M&G business for enhanced service to its British savings and retirement customers with 4 million policies," the software major said in a statement here.
As part of the deal, the administration of four million life and pensions contracts will move from M&G to TCS, a market leader in British life and pension management with 17 million policies on its digital platform, TCS BaNCS.
"We will propel the digital transformation through investments in digital and technology services. We will also bring the combined strength of our domain expertise in BFSI and managed policy administration in the British life and pension industry," said TCS Chief Executive Rajesh Gopinathan on the occasion.
About 1,100 roles from M&G's sites across Britain will also be transferred under the Transfer of Undertakings (Protection of Employment) agreements to TCS' FCA-regulated British subsidiary.
About 700 roles in India will also move to the Indian IT major.
"The partnership with TCS is a part of our strategy to create a digitally-enabled business. Our customers will receive a better service as a result and our colleagues will be better equipped to provide that service," said M&G Chief Executive John Foley in the statement.
The fresh deal with TCS is also a part of M&G's five-year plan to improve customer outcomes through its pound 250-million (Rs 2,125 crore) investment its shareholders will be making over the next five years.
TCS will also take over a part operation of Prudential's IT infrastructure to deliver services to the businesses within its group.