IT services giant Tata Consultancy Services (TCS) announced the expansion of its partnership with National Employment Savings Trust, UK’s largest workplace pension scheme in a £840 million (around $1.1 billion) deal over an initial tenure of 10 years, wherein it will digitally transform the firm’s administration services to deliver enhanced member experiences.
The total maximum estimated value of the contract, if extended to the entirety of its 18-year tenure, will be £1.5 billion (around $1.9 billion).
"The contract will be for a minimum term of 10 years, with an optional extension period of up to 5 years, and the option of an additional period of up to 3 years for exit. The total contract value is indicative and covers this potential 18 year period," a Nest spokesperson said.
This contract was earlier with French IT services firm Atos which was cancelled in early 2023, just two years into a potential 18-year team, The Register had reported.
The news website had added that the collapse of this contract may lead as many as 1,000 Atos job losses in the UK and India.
This is TCS’ fourth large deal from the region in 2023, following the $723-million deal from insurer Phoenix Group, the Marks & Spencer deal and the 10-year contract with the Teacher’s Pension Scheme in England and Wales, amidst a challenging macro environment in the region.
Nest and TCS have worked closely since 2011 when the digital, auto-enrolment pension scheme was first launched. Nest currently has more than 12 million members and by the end of the next decade it expects
to have around £100bn assets under management.
"While the exact costs are commercially sensitive, we can confirm that under our current estimates, the total contract cost falls within the total estimated contract value of £1.5bn, as published in the Contract Award Notice. It’s important to note this amount is the estimated total maximum value for the maximum duration of the contract, including extensions," the Nest spokesperson added.
As a part of this extended partnership, TCS will deploy solutions from TCS BaNCS to deliver personalized, self-directed experiences to members. “This will enable Nest’s 12 million members and 1 million employers to access the right information at the right time, in the way that suits them best,” the company said.
Gavin Perera-Betts, Chief Customer Officer, Nest in a statement said, “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. This puts us in an excellent position to further advance our operations and build a truly digital offering that delivers a superior customer experience long into the future.”
Vivekanand Ramgopal, President of BFSI Products & Platforms, TCS added, “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. We are looking forward to leveraging our contextual knowledge, technology expertise and proven platform to help Nest realise our shared vision for the future.”
TCS is the largest provider of software and IT services in the UK, and has a workforce spanning 30 locations around the country.
Overall, with this TCS would have bagged around five large deals in the first half of calendar year 2023 so far. The Marks & Spencer deal, according to reports is worth $1 billion.
In India, it had recently bagged an advanced purchase order of Rs 15,000 crore or $1.8 billion in a consortium from the government-run telco BSNL to expand its 4G network pan India.
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