India’s largest IT firm Tata Consultancy Services (TCS) said it has bagged an over USD 2-billion deal from Transamerica to transform the latter’s US insurance and annuity business lines.
The partnership enables Transamerica to rapidly enhance its digital capabilities, simplify the service of more than 10 million policies into a single integrated modern platform, TCS said in a statement.
The multi-year agreement is worth more than USD 2 billion in revenues, and is expected to be completed by the second quarter of 2018, it added.
The announcement comes a day after TCS reported 3.6 per cent fall its net profit to Rs 6,531 crore in the December 2017 quarter. The Mumbai-headquartered company had posted a net profit of Rs 6,778 crore in the October-December quarter of the previous fiscal.
“TCS will provide valuable administration and quality customer service, and Transamerica will continue to engage with our customers, clients and advisors in the most meaningful ways to them by utilising our digital engagement platforms and developing new solutions that help people save, protect, invest and retire,” Mark Mullin, Transamerica President and CEO, said.
The agreement is expected to lead to annual run-rate savings of about USD 70 million initially growing to USD 100 million over time for Transamerica, the statement said.
TCS said it will make job offers to all of the applicable Transamerica employees currently supporting the life insurance, annuity, supplemental health insurance, and workplace voluntary benefits business lines.
This, it said, will ensure “a consistently excellent experience for Transamerica customers and protecting approximately 2,200 American jobs”.
It added that employees transitioning to TCS will be given the opportunity to remain in the same US cities where they are currently based. TCS will also expand its existing relationship with Transamerica under this transaction, and locate in Transamerica’s current offices in various US cities.
“We have invested heavily in our insurance digital platform, TCS BaNCS, and our extensive US capabilities, and are proud to partner with Transamerica in its ongoing transformation and welcome the transitioning employees to promising new careers at TCS,” TCS CEO and MD Rajesh Gopinathan said.