TCS Signs $690 Million Deal With Prudential Plc Unit

Tata Consultancy Services Ltd. today signed a $690 million deal with M&G Prudential, the U.K. and European savings and investments business of Prudential Plc., to deliver enhanced service to its U.K. savings and retirement customers.

As part of the 10-year deal, the administration of over 4 million life and pensions contracts will move from Prudential’s incumbent business partner to TCS which is the market leader in U.K. life and pension administration, the statement said. About 1,100 roles from the incumbent supplier across a number of U.K. sites are expected to be transferred to TCS’ FCA-regulated, U.K. subsidiary. A further 700 roles in India are also expected to move from the incumbent supplier to TCS.

This agreement comes days after TCS bagged a deal worth more than $2 billion from the U.S. insurance group Transamerica, its largest contract till date.

TCS will also assume responsibility for the operation of some of Prudential’s internal IT infrastructure, and about 180 full-time roles in London, Reading and Craigforth will be transferred from M&G Prudential to TCS.

Chief Executive Officer Rajesh Gopinathan is hopeful of bringing the Indian IT major’s strong record of managed policy administration in the U.K. life and pension industry.

The Indian IT major’s insurance digital platform has had a strong play in the European market for more than a decade, with more than 17 million policies under administration, it said in the statement.

“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,” John Foley, Chief Executive of M&G Prudential, said in the statement.