Indian IT services major Tata Consultancy Services (TCS) announced the expansion of its partnership with National Employment Savings Trust, the UK’s largest workplace pension scheme in a £840 million (around $1.1 billion) deal.
The deal, covering an initial tenure of 10 years, is for the IT major to digitally transform the UK firm’s administration services to deliver enhanced member experiences.
The deal size could go up to about $1.9 billion if the contract runs for an 18-year period, with the proposed extension, the company said.
“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,” 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 said the collapse of this contract may lead to as many as 1,000 Atos job losses in the UK and India.
TCS expands portfolio with UK deals
This is TCS’ 4th large deal from the region in 2023, the other ones being 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.
The UK pension scheme and TCS have worked closely since 2011 when the former’s 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 £100 billion in assets under management.
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