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News >> Technology >>
TCS bags $80 Million deal from U.K.'s state-owned CMEC
By siliconindia
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Wednesday, 08 April 2009, 22:18 IST
Hyderabad: Software giant TCS has bagged $80 million outsourcing contract from UK based Child Maintenance and Enforcement Commission (CMEC). The deal is the first in a series of almost $2-3 billion worth of contracts to be awarded by the UK's state-owned departments.
"The UK's state-owned departments are seeking help from the Indian offshoring industry for bringing troubled government technology systems back on track and lowering the cost of managing government IT systems anywhere between 25 percent and 40 percent," experts told The Economic Times. Under the current deal, TCS will help CMEC implement and integrate various applications, including Oracle's Siebel customer relationship management software and TCS' Bancs software. There were three vendors including TCS who had presented their bids for the contracts.
Other UK government agencies like department of work and pension (DWP), National Health Service (NHS) and HM Revenue and Customs (HMRC) also plans to outsource their work. The need for major outsourcing come in the wake of the department's plans to make it mandatory for firms employing more than 50 employees to file tax-related and other information online by 2011. "As the internal IT development resources are not of the strongest quality, good people go to commercial organizations. Those that are outsourced to UK-based providers are not always delivered on a more efficient basis," said Bob McDowall, Research Director at TowerGroup Europe.