M&G Prudential and Tata Consultancy Services (TCS) have extended their agreement, under which TCS will manage an additional of 1.8 million customer policies in a $668m deal.
Image: The extension brings the deal value of $1.3bn. Photo: Courtesy of rawpixel/Unsplash.
In January 2018, TCS had announced a $690m contract with the insurer to manage over four million customer policies over a period of 10 years.
With the extension, TCS will now be managing a total of 5.8 million customer policies taking the deal value to $1.3bn.
TCS stated that the latest deal will strengthen its position in the UK life and pension administration, with more than 18 million policies being administered by its BFSI Digital Platform, powered by TCS BaNCS.
As per the deal, TCS will be responsible for the operation of some of Prudential’s internal IT infrastructure to enable the IT operations to deliver greater flexibility in providing services to the businesses within the Prudential Group.
Prudential UK CEO Clare Bousfield said: “As we move towards an independent M&G Prudential we continue to transform our business to keep pace with the needs of our customers. We are confident that extending our strategic partnership is the right thing to do.
“Our customers will benefit from a better experience, digitally enhanced systems, tools and service, while the colleagues who have been central to our success in servicing our customers will join a rapidly growing business and have access to many opportunities that being part of a world leading IT services company can deliver.”
In January, TCS stated that about 1,100 roles from M&G Prudential across several of its UK sites were expected to be transferred under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) arrangements to TCS’ FCA-regulated, UK subsidiary. A further 700 roles in India are also expected to move from the supplier to TCS.
TCS Banking, Financial Services and Insurance Platform President and Global Head Suresh Muthuswami said: “Earlier this year, we embarked on a journey to digitally transform and provide an enhanced service for M&G Prudential customers.
“We are delighted to have expanded this partnership which will help accelerate the growth agenda for M&G Prudential. We remain committed to deliver greater speed, agility and flexibility through our BFSI Digital Platform.”