In its biggest deal to date, Tata Consultancy Services Ltd (TCS) on Friday signed a multi-year agreement worth more than $2 billion with the US-based insurance company Transamerica to digitally transform its life and annuities business.
The partnership enables Transamerica -- a leading provider of life insurance, retirement and investment solutions -- 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.
"The multi-year agreement is worth more than $2 billion in revenues, the largest contract signed by TCS to date," the company said in a statement.
The agreement is expected to lead to annual run-rate savings of approximately $70 million initially -- growing to $100 million over time -- for Transamerica.
"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 Managing Director of TCS.
"We have invested heavily in our insurance digital platform, TCS BaNCS, and our extensive US capabilities, and are proud to partner with Transamerica in its ongoing transformation and welcome the transitioning employees to promising new careers at TCS," Gopinathan added.
The partnership will also support Transamerica's overall transition to a simplified, cloud-enabled platform for agile new product development, enhanced services, acquisitions and strategic innovation investments.
"TCS was carefully selected because of their significant, ongoing investments in technology and their expertise in the insurance and annuity industry," said Mark Mullin, Transamerica President and Chief Executive Officer.
"TCS will provide valuable administration and quality customer service, and Transamerica will continue to engage with our customers, clients and advisors in the most meaningful ways to them by utilising our digital engagement platforms and developing new solutions that help people save, protect, invest and retire," Mullin added.
In the European market, "TCS BaNCS" has become a successful digital platform for more than a decade, with more than 17 million policies under administration.
For the US market, TCS has adapted the platform to meet its operational and regulatory needs.
"TCS continuously invests in the latest technologies, local talent and US facilities to help leading US companies adapt to rapidly evolving customer demands. This agreement with Transamerica marks TCS' entry into a highly specialised US Insurance Third Party Administration marketplace," said Suresh Muthuswami, President and Global Head, Banking, Financial Services and Insurance Platforms, at TCS.
TCS will also make job offers to the applicable Transamerica employees. Employees transitioning to TCS will be given the opportunity to remain in the same US cities where they are currently based.
Beyond offering roles to 2,200 Transamerica employees across US cities, TCS also plans to hire locally in Iowa, set up relationships with educational institutions and help employees with professional development to gain digital skills and fluency, the company added.