Shares of Tata Consultancy Services (TCS) remained in focus today after the IT major extended its strategic partnership with the U.K.’s largest workplace pension scheme, Nest. The country’s largest software exporter has been working closely with Nest since 2011 and now expanded partnership to provide enhanced member experience by using its digitally enabled, omnichannel platform powered by TCS BaNCS.
“The contract value was signed for 840 million pound with an initial tenure of 10 years. The total maximum estimated value of the contract, if extended to the entirety of its 18-year tenure, will be 1.5 billion pound,” TCS said in a post market hour exchange filing on Wednesday.
Reacting to the news, shares of TCS opened higher at ₹3,240.05 against the previous closing price of ₹3,227.20 on the BSE. In the early trade, the IT heavyweight gained as much as 1% to ₹3,267, while the market capitalisation rose to ₹11.91 lakh crore. The country’s most valued firm touched a 52-week high of ₹3,575 on February 16, 2023, while it hit a 52-week low of ₹2,926 on September 26, 2022.
In the exchange filing, TCS said it has extended long-standing partnership to focus on digitally transforming Nest’s scheme administration services, delivering enhanced member experiences and furthering the scheme’s mission of delivering better retirement outcomes for people across the U.K.
Nest was set up by the U.K. government to ensure every employer in the country could offer a workplace pension to their employees. Since then, it’s grown to become the largest workplace pension scheme in the country by membership, with more than 12 million members. One in three of the working population is expected to have a Nest retirement pot by the late 2020s.
Nest and TCS have worked closely since 2011 when the digital, auto-enrolment pension scheme was first launched. During this tenure, TCS built a greenfield operation with a user-friendly, multi-channel, self-serve model, and a core that helped Nest became the provider for millions of workers saving for their retirements.
As part of the expended partnership, TCS will help Nest transform the administration services using its digital-first platform powered by TCS BaNCS. “Its digital-first architecture provides APIs to enable easy integration with ecosystem partners, such as payroll providers and fintechs. It will leverage the latest technologies and data analytics to deliver personalised, self-directed experiencesto 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,” it said in the filing.
TCS BFSI Platforms is an end-to-end digital ecosystem that powers the journeys of life, pensions/annuities, property/casualty, and health insurance providers. This SaaS-first platform helps companies manage enterprise simplification, deliver superior customer experience, and achieve digital transformation.
“The purpose-driven partnership between Nest and TCS resulted in an immensely successful pension plan for the U.K. workforce, that is now a global benchmark on how an innovative, user-friendly, auto enrolment pension scheme should be run,” said Vivekanand Ramgopal, President, BFSI Products & Platforms, TCS.
“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,” Ramgopal said.
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