Two of India’s biggest IT services companies – Tata Consultancy Services Ltd (TCS) and Infosys Ltd – sealed multi-year mega contracts in Europe early this week amid a general slowdown in the sector.
While Infosys won a $454-million deal to digitally transform Denmark’s Danske Bank, TCS announced the expansion of a long-term partnership with Standard Life International DAC, a wholly owned subsidiary of the Phoenix Group, Europe’s largest life and pensions consolidator.
The deal with Danske Bank is for five years, which could be ramped up to $900 million and may be renewed for three more years, Infosys said in an exchange filing.
“Infosys will collaborate with Danske Bank to strengthen their core business with greater digital, cloud and data capabilities. This will help Danske Bank create more value for their customers using powerful advances in AI, including generative AI,” Infosys chief executive officer Salil Parekh said in a statement.
Infosys will also acquire Danske Bank’s IT center in Bengaluru which employs 1,400 people.
“We have a strong starting point, and we want to further accelerate our digital and technology transformation. We have conducted a thorough process to find a partner that can help us achieve that. Infosys has the tools, experience, and expertise to support us in accelerating our transformation using cloud and AI technologies,” Frans Woelders, chief operating officer of Danske Bank, said in a statement.
Meanwhile, for TCS, the deal with Standard Life marks its fifth major transaction in Europe this year.
Initially, TCS will transform and transition over 400,000 Standard Life policyholders to a new platform running on TCS BaNCS, its proprietary banking, financial services, and insurance (BFSI) platform.
The collaboration will also see the IT services company establish a customer operations center in Germany and a digital platform for policyholders in Germany and Austria.
Nigel Dunne, chief executive officer of Standard Life International DAC, said: “We continually review our operating model to ensure it is meeting the evolving needs of our customers on their journey to and through retirement. Leveraging the advantages of our strategic relationship with TCS, a leading global organization, will support our growth strategy in Europe and bring benefits to both our customers and advisers.”
“We are delighted to expand our long-standing partnership with the Phoenix Group. With TCS’ Digital Platform for Life and Pensions powered by TCS BaNCS, Standard Life International DAC will have a future-ready digital core that enhances its agility and will support its growth aspirations,” said R. Vivekanand, president of BFSI products and platforms, TCS.
The financial details of the TCS deal were not disclosed.
The deals come at a time dealmaking is drying up in the US, its primary market.
Earlier this month, TCS terminated its decade-long, $2-billion deal with US-based insurer Transamerica.
But last week, it clinched a $1.5 billion deal with the UK’s National Employment Savings Trust, or NEST, to revamp the administrative services of Britain’s biggest workplace pension scheme.
This follows the Marks & Spencer deal in April, another Phoenix Group contract to transform its ReAssure business using its TCS BaNCS platform in February, and the contract for the Teacher’s Pension Scheme in England and Wales earlier this month.
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