Tata Consultancy Services (TCS) has bagged more than $2 billion multi-year deal from US insurance firm Transamerica for undertaking digital transformation.
TCS earlier said its digital revenue contributes 22.1 percent (+39.6 percent) revenue to its total quarterly revenue in the December quarter of 2017.
Accenture, Infosys, Wipro, Cognizant, Tech Mahindra, Capgemini, among others, are also looking for such big digital transformation deals.
Transamerica, which has its corporate headquarters in Baltimore, Maryland, will utilize the IT services deal to 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 better customer experiences.
“TCS was carefully selected because of their significant, ongoing investments in technology and their expertise in the insurance and annuity industry,” said Mark Mullin, president and chief executive officer of Transamerica.
The IT outsourcing agreement is expected to lead to annual run-rate savings of approximately $70 million initially — growing to $100 million over time — for Transamerica. Tata Consultancy Services said it will also make job offers to eligible Transamerica employees.
“TCS is helping to guide many of today’s leading companies through their business 4.0 journeys, in building their digital spines, becoming more agile, creating superior customer experiences, and driving exponential growth,” said Rajesh Gopinathan, CEO and MD, TCS.
This agreement with Transamerica marks TCS’ entry into a highly specialized US Insurance Third Party Administration marketplace and will establish TCS BaNCS as a formidable digital platform for the US Insurance industry
TCS BaNCS digital platform manages more than 17 million policies in the European market for more than a decade. India based TCS has adapted the platform for the U.S. market to meet its operational and regulatory needs.
Employees transitioning to TCS will be given the opportunity to remain in the same U.S. 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 U.S. cities.
TCS 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. Beyond offering roles to 2,200 Transamerica employees across U.S cities, TCS plans to hire locally in Iowa, set up relationships with educational institutions, and help employees with professional development to gain digital skills and fluency.