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TCS wins $40 Mn New India Assurance deal
By siliconindia
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Saturday, 26 January 2008, 17:45 IST
Mumbai: New India Assurance has awarded an over $40 million (Rs 160 crore) transformational contract to Tata Consultancy Services (TCS) for implementing core insurance platform across formers 1,100 branch network in the country, reported Business Line.
The eight years engagement is the first major one for TCS in the non-life insurance space, a company spokesperson said. As part of the deal, the company will deploy and maintain its insurance suite, TCS BaNCS Insurance.
The spokesperson added that the deal would also enable integration of enterprise solutions pertaining to human resources, customer relationship management and business intelligence into the core insurance product.
New India Assurance, which is currently the largest non-life insurance company in India, has 1.5 crore policyholders in the country. TCS will start getting revenue out of the deal from the current quarter itself, the company spokesperson added.
With the added heft the insurance major will get with IT outsourcing, New India Assurance can take on increased competition in the space.
In the past few years, public sector non-life insurance companies have been steadily losing market share. In 2006-07, the share dropped to 65 percent, against 73 percent in the previous year.
Even though margins in the domestic IT business have been a cause of concern for companies, perceptions of a global slowdown in discretionary spending and the growing IT maturity in India have resulted in the domestic market gaining a lot of importance. TCS is now aggressively looking at the domestic IT space.