TCS’s heavy investment into TCS BaNCS, its insurance digital platform seems to have paid off. It just bagged a $2 billion+ multi-year contract from Transamerica for digitizing its U.S. insurance and annuity business lines. Mark Mullin, President and Chief Executive Officer of Transamerica stated that the contract was awarded to TCS because of its expertise in the related sector and its technological proficiency. He also stated that the transformation would give them a competitive edge in the insurance and annuities market. Transamerica will earn an initial $70 million run-rate savings, which will increase over time to $100 million.
TCS was of the opinion that the partnership will empower Transamerica with a streamlined cloud enabled platform for superior services, agile new product development, takeovers and strategic innovation investments. It will totally change the way of working of its various annuities and insurance products.
The contract enables TCS to enter into the very niche US Insurance Third Party Administration marketplace and its digitized insurance platform will become a formidable force to reckon with in the U.S. insurance sector.
Huge investments are expected to be made by TCS for setting up its insurance hub in Cedar Rapids, Iowa in Northern part of the country. It will also use present offices of Transamerica across several U.S. cities for locating itself. TCS will make job offers to 2,200 employees of Transamerica across U.S. cities, allowing them to retain their current working base. It will also hire local professionals. It aims to develop rapport with educational institutions and empower professional employees with skills and fluency in digital technology. TCS CEO, Rajesh Gopinathan stated that he was proud to partner with Transamerica and be involved in its digitization.
A day earlier to obtaining this contract, TCS had announced its third quarter results, which had been very close to market expectations. The company felt that there seemed to be a rise in positive sentiment across industry verticals, with another outsourcing contract being renewed by TCS recently. It was $2.25 billion contract with a television ratings measurement company by name of Nielsen.