IT services major Tata Consultancy Services has announced an expansion of its partnership with the U.K.’s largest long-term savings and retirement provider Phoenix Group in a £600 million ($723 million) deal, its largest deal win in the fiscal year 2023 and largest in the UK in the past three years.
Phoenix Group acquired U.K.-based life insurer ReAssure in 2020. According to the latest contract, Phoenix Group aims to digitally transform its ReAssure business using the TCS BaNCS-based platform. The company has now engaged with TCS to drive synergies and enhance the customer experience for ReAssure's policyholders.
"The expanded partnership will result in a transformation of ReAssure’s operations, consolidating the heritage business on the same future-proof TCS BaNCS-based digital platform used to administer Phoenix Group’s other books of business," TCS said in a stock exchange filing.
According to the deal, customer administration and servicing of ReAssure’s 3 million policies will be managed by Diligenta, TCS’ regulated subsidiary in the UK, on behalf of Phoenix Group. The contract for the end-to-end business transformation, including administration services, is valued at over £600 million.
Brid Meaney, CEO of Heritage Division, Phoenix Group said: “Our strong partnership with TCS enables us to benefit from their proven capabilities and digital core as we continue to consolidate policies onto the TCS BaNCS platform. Ultimately, this transformation will ensure that Phoenix’s customers benefit from the clear digital focus, consistent customer journeys and customer proposition provided by one platform.”
“Customer experience transformation has been a cornerstone of the TCS BaNCS platform’s value proposition. We are delighted to further expand our long-standing partnership with Phoenix Group to digitally transform its ReAssure business, drive synergies and improve the end-to-end customer experience,” said R Vivekanand, president, BFSI products & platforms, TCS.
Amid the deal announcement, the TCS stock opened a gap-up at ₹3,472 and surged 1.9% to its intra-day high of ₹3,539.50. The stock is currently trading up at 1.69% at ₹3,531.10. The blue-chip stock has surged 2.41% in the past week; 6.38% in the past month; 5.30% in the past six months; and 8.30% in the year-to-date period.
Tata Consultancy Services recorded a net profit of ₹10,883 crore for the third quarter of the financial year 2022-23, up 10.98% year-on-year from ₹9,806 crore in the corresponding period last fiscal. The company’s revenue from operations jumped 19.1% year-on-year to ₹58,229 crore during the quarter that ended December 31, 2022. During the third quarter, TCS’ largest markets were North America and the U.K., which saw 15.4% growth, while Continental Europe grew 9.7%.