TCS bags $690-million contract from M&G Prudential

In another major deal win, TCS on Tuesday announced that it won a deal with M&G Prudential, the UK and European savings and investments business of Prudential, to digitally transform their business and deliver enhanced service for its UK savings and retirement customers. The deal is valued over £500 million ($690 million ) over 10 years and covers the support of over 4 million customer policies.

John Foley, Chief Executive of M&G Prudential, said, “Strategic partnerships are an important part of our five-year plan to improve customer outcomes through the £250-million capital investment our shareholders are making in the business. This partnership with TCS is an essential element of our strategy to create a digitally-enabled business. Our customers will receive a better service — day in, day out — as a result and our colleagues will be better equipped to provide that service.”

The administration of over 4 million life and pensions contracts will move from Prudential’s incumbent business partner to TCS which has transferred more than 17 million policies to its digital platform, TCS BaNCS.

Third major deal This is the third major deal that TCS has announced in the last one month. In the last several quarters, the company was seen struggling to get $100 million plus deals as experts saw deal sizes getting smaller and project durations getting shorter due to the impact of digital technologies.

However, the last three deals may indicate the reversal of this trend. TCS renewed the $2.25-billion outsourcing contract with television ratings measurement company Nielsen, bags $2-billion + deal from Transamerica for Third Party Administration and now another $690 million deal with P&G only highlights that TCS' investments are paying off.

Two of these three large deals were for TCS BaNCS digital platform that already has more than 17 million policies under administration.

Transfer of employees For M&G, about 1,100 roles from the incumbent supplier across a number of UK sites are expected to be transferred under the TUPE arrangements to TCS’ FCA-regulated, UK subsidiary. A further 700 roles in India are also expected to move from the incumbent supplier to TCS.

TCS will also assume responsibility for the operation of some of Prudential’s internal IT infrastructure to enable the IT operations function to deliver greater flexibility in the provision of services to the businesses within the Prudential Group. About 180 full-time roles in London, Reading and Craigforth will also transfer under the TUPE arrangements from M&G Prudential to TCS.

Rajesh Gopinathan, CEO and MD, TCS, said, “We will propel this digital transformation through TCS’ continuous investments in digital and technology services. We will also bring the combined strength and capabilities of our deep domain expertise in BFSI and TCS’ strong record of managed policy administration in the UK life & pension industry.

“In addition, TCS’ BaNCS platform will power digitised front, mid and back-office operations which will enable M&G Prudential to become more agile and improve customer experience.”

COMMENT NOW