Tata Consultancy Services (TCS), India’s largest software services exporter by revenue, said it signed a multi-year deal worth more than $2 billion with Transamerica to transform the life insurer’s US insurance and annuity business lines. The mega deal comes less than a month after TCS won a $2.25 billion outsourcing contract from television ratings measurement company Nielsen. TCS is the only Indian IT services company that has won billion dollar deals.
TCS said it would 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, would ensure “a consistently excellent experience for Transamerica customers and protecting approximately 2,200 American jobs.
TCS also plans to make a significant investment in the region, most notably by establishing its new North American insurance hub for business operations in Cedar Rapids, Iowa. The deal will help Transamerica enhance its digital capabilities, simplify the service of more than 10 million policies into a single integrated modern platform, and drive greater sustainable growth opportunities through superior customer experiences.
“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 Rajesh Gopinathan said.
Ray Wang, principal analyst & founder at IT research firm Constellation Research, said the effort to win the large 100 million-plus deals has never been more intense. For Transamerica, the deal is expected to result in annual run-rate savings of about $70 million initially, growing to $100 million over time.
