Tata Consultancy Services (TCS), a global leader in IT services, has explained how it won a three-year contract extension for SPARSH (System for Pension Administration – Raksha), a government initiative aimed at enhancing the pension distribution process for over 30 lakh defence pensioners in India.
The extended tech contract will see TCS continue to maintain and upgrade the program’s hardware and software, ensuring the system’s efficiency and security for years to come. Financial details were not disclosed.
Launched in October 2020, the SPARSH system has transformed the pension processing experience for India’s defence personnel by significantly reducing processing timelines. Previously, pension disbursement could take anywhere between 12 to 18 months, but under the new digital solution, it now takes 14 days. First-time pension payments are now processed within five to seven days, enhancing the overall experience for pensioners.
A notable achievement for TCS has been the successful implementation of the One Rank One Pension (OROP) scheme, which ensures that defence personnel of the same rank and length of service receive the same pension, irrespective of their retirement date.
TCS reduced the OROP processing time from six to eight months to just two weeks, disbursing payments to 1.8 million eligible pensioners in a record 15-day period. This remarkable feat earned TCS a certificate of appreciation from the Controller General of Defence Accounts (CGDA).
TCS will improve the system’s transparency and efficiency, supporting ongoing application development efforts. The company is also in discussions with the Department of Defence to potentially create a digital solution that would allow pensioners to make reverse payments in case of overpayments.
“By reducing processing times and implementing efficient digital solutions, we’re helping ensure timely, transparent pension disbursement while setting new benchmarks in public service delivery,” Girish Ramachandran, President – Growth Markets and Public Services at TCS, said.
The SPARSH system involved the digitization of millions of records dating back to 1914 and the onboarding of more than 30 lakh defence pensioners across India’s three branches of the Armed Forces. TCS has successfully onboarded 50 organizations, 2,302 offices, and disbursed over Rs 2,82,067 crore in pensions.
“The extension of our partnership with SPARSH reflects TCS’ capability to drive large-scale digital transformation projects that strengthen the nation’s core systems,” Tej Paul Bhatla, SVP and Business Head, Public Services – India at TCS, said.
Cost Savings and Global Expertise
The digital pension system has also resulted in significant cost savings for the Indian government. By centralizing the pension disbursement process and eliminating bank service charges, the system has saved the government approximately Rs 250 crore annually.
TCS has a proven track record in transforming pension systems globally. In the UK, TCS has managed the National Employment Savings Trust (NEST) since 2011, providing a user-friendly, self-service model for over 13 million workers. Recently, TCS signed a 15-year contract with Ireland’s Department of Social Protection to transform the country’s pension system, benefiting over 8 lakh workers.
TCS has played an instrumental role in India’s technological transformation, executing several mission-mode programs, including digitizing the country’s stock exchanges, powering RTGS and NEFT systems, transforming passport issuance, and re-imagining various other Central and State Government services. Today, approximately 7 out of 10 Indians benefit from TCS services, directly or indirectly, every day.
