TCS bags billion-dollar contract with UK's NEST
TCS' contract with National Employment Savings Trust (NEST) for TCS has the potential to grow to $1.9 billion if the tenure extends to 18 years.
Tata Consultancy Services (TCS), among India’s top IT services exporters, has bagged a $1 billion contract with National Employment Savings Trust (NEST), a workplace pension scheme in the UK, in a deal spread over a period of 10 years. This deal has the potential to grow to $1.9 billion if the contract completes 18-year tenure.
In a notice to the stock exchanges, TCS said, “We wish to inform that the contract value was signed for £840 million with an initial tenure of 10 years. The total maximum estimated value of the contract, if extended to the entirety of its eighteen-year tenure, will be £1.5 billion.”
TCS has been delivering end-to-end administration services for the NEST pension scheme since 2011. As part of the new deal, the Indian IT company will deploy its TCS BaNCS platform to enable easy integration with ecosystem partners, such as payroll providers and fintechs.
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TCS said this will enable NEST’s 12 million members and one million employers to access the right information at the right time.
NEST was set up by the government to ensure every UK employer could offer a workplace pension to their employees. One in three in the working population is expected to have a NEST retirement pot by the late 2020s. By the end of the next decade, NEST is expected to have around £100 billion assets under management.
“I’m looking forward to continuing our journey with TCS and exploring the opportunities ahead of us. We have a strong foundation after many years of working together and they’ve proven their ability to deliver successfully for a scheme the size and complexity of NEST,” said Gavin Perera-Betts, Chief Customer Officer, Nest.
This is the fourth large contract that TCS bagged in the UK this year, with the other three being transactions with Phoenix, Marks & Spencer, and Teachers Pension Scheme.
Vivekanand Ramgopal, President, BFSI Products and Platforms, TCS, said, “We are delighted to further expand this long-standing partnership with Nest and support them in pushing the boundaries in offering compelling omnichannel member experiences to the new generation of workers entering the workplace.”
Edited by Kanishk Singh