Wednesday 9 November 2011
Tata Consultancy wins $2.2 billion order from UK
TCS won its second biggest ever outsourcing contract worth $2.2 billion on Wednesday from UK-based pension firm Friends Life, providing positive forecast for India's technology sector complaining of shrinking contracts and delays in decision making by top customers.
The contract, TCS' second biggest deal after the company won $2.8 billion order in 2008 from Citigroup, is based on a model wherein the company will be paid for each insurance transaction and will add another 3.2 million policies to the existing Diligenta platform owned by its UK subsidiary.
Domestic brokerage Motilal Oswal, estimates that revenues of Diligenta will increase by 86% from Rs772crore in fsical 2011 to Rs1,444crore in fiscal 2013. As part of the deal, Diligenta will take on board about 1,900 employees of Friends Life, taking the subsidiary's total UK headcount to about 3,700.
Shares of TCS rose 1.8% on the Bombay Stock Exchange to close at Rs 1123 on Wednesday after the afternoon announcement of the UK deal.
The contract, TCS' second biggest deal after the company won $2.8 billion order in 2008 from Citigroup, is based on a model wherein the company will be paid for each insurance transaction and will add another 3.2 million policies to the existing Diligenta platform owned by its UK subsidiary.
Domestic brokerage Motilal Oswal, estimates that revenues of Diligenta will increase by 86% from Rs772crore in fsical 2011 to Rs1,444crore in fiscal 2013. As part of the deal, Diligenta will take on board about 1,900 employees of Friends Life, taking the subsidiary's total UK headcount to about 3,700.
Shares of TCS rose 1.8% on the Bombay Stock Exchange to close at Rs 1123 on Wednesday after the afternoon announcement of the UK deal.
