- Initial Deal valued at £486m over 12 years; Commitment to maintain centre of excellence in Peterborough -
Tata Consultancy Services (TCS) today announced its intention to move into the UK life and pensions industry after entering into exclusive discussions with Pearl Group Limited, the closed fund group, with the intention to transfer existing Pearl business processes to a new UK company, based in Peterborough, which will be a subsidiary of TCS.
This decision comes after a rigorous and extensive, year-long, selection process by Pearl Group Ltd, which examined tenders from a number of leading companies before it decided to choose TCS. The agreement will mean that a new company, a subsidiary of TCS, will be set up and will employ about 950 of Pearl Group’s current 1,100 staff, with about 150 staying with Pearl.
The new subsidiary will specialise in BPO for life and pension businesses, starting with Pearl Group’s closed books portfolio. It will also focus on offering similar services to other life companies, presenting it with an opportunity for significant future growth as Business Process Outsourcing (BPO) is rolled out across the life assurance industry. This deal will generate revenues of over £480m ($847m) over the next 12 years as a result of creating a new platform beyond IT services.
Commenting on this strategic initiative, S. Ramadorai, CEO and Managing Director at Tata Consultancy Services said, “This deal validates our strategy of pioneering the next generation of Business Process Outsourcing opportunities. Our extensive experience working in the insurance industry together with our excellence in technology will help us emerge as a significant player in life assurance and pensions administration services and help us continue our strong growth momentum.”
Phiroz Vandrevala, executive vice-president and global head of corporate affairs at Tata Consultancy Services said, “TCS is delighted to be chosen by Pearl, a decision based on our long-standing work in the UK insurance industry, our track record of working for five of the top 10 UK insurance companies and the result of our 14 year relationship with Pearl. TCS will sign a long-term lease at the Peterborough site and our intention is to establish a BPO centre of excellence for the UK there.”
A.S. Lakshminarayanan, VP and country manager, United Kingdom & Ireland at Tata Consultancy Services said, “TCS has been recognised for its outstanding contribution to the United Kingdom’s knowledge economy, and together with the strength and heritage of Pearl and its professionals, we will create a new force in life and pensions BPO in the UK.”
NOTES TO EDITORS
About Tata Consultancy Services (TCS)
Tata Consultancy Services (TCS) is the world-leading information technology consulting, services, and business process outsourcing organization that envisioned and pioneered the adoption of the flexible global business practices that today enable companies to operate more efficiently and produce more value.
TCS achieved this by creating and perfecting a unique method of global deployment and delivery of high quality, high value services and products in IT consulting and business process outsourcing. Known as the “Global Delivery Model,” this strategic services delivery concept has reshaped the IT services industry.
More than 75% of TCS customers reward the company’s reliability, passion, creativity, and unique ability to handle the broadest range of their IT needs by continually extending and deepening their partnerships with TCS. With more than 50,000 of the world’s best trained IT consultants located in 33 countries, TCS is uniquely positioned to deliver its flexible world class services seamlessly to any location.
TCS posted total revenues of $2.24 billion (US) in the fiscal year 2004-2005 making it the first Indian IT company to cross two billion mark. The company is listed on the National Stock Exchange and Bombay Stock Exchange in India.
TCS has been operating in the UK and Ireland since 1975 and has eight offices in these markets, including a development center in Guildford. Over 5000 TCS consultants are engaged on UK client work for organisations such as the NHS, Aviva, Forth Ports, Somerfield and P&O.
For more information, visit our website at www.tcs.com/uk