Tata Consultancy Services (TCS) on Thursday said it has won a $1.2 billion IT and operations support deal from The Nielsen Company
$1.2 bn contract comes from Nielsen of The Netherlands
MUMBAI: In the largest information technology (IT) outsourcing deal by an Indian company, Tata Consultancy Services (TCS) on Thursday said it has won a $1.2 billion IT and operations support deal from The Nielsen Company to be serviced over 10 years.
Although the deal eclipses the $1 billion Tech Mahindra-BT deal announced last fiscal in absolute numbers, the latter is spread over five years against TCS’ 10, giving Tech Mahindra higher revenues per annum.
“This $1.2 billion doesn’t include the discretionary spend of Nielsen’s. We will bid for those projects, too, as and when they come up. So, there is a significant upside possible from the current $1.2 billion,” N Chandrasekaran, chief operating officer, TCS, said.
Headquartered in Haarlem, The Netherlands, and New York, US, Nielsen is a leading provider of consumer and media information services to clients in print, online and mobile media services, entertainment, books, video and the music industries, and is a major provider of business publications and trade shows.
Under the 10-year agreement, TCS will assume responsibility for IT and operational processes and integrate and centralise multiple systems, technologies and processes.
TCS will also assume responsibility for certain finance and human resource business processes, which will be executed on new business process outsourcing (BPO) platforms.
As part of the deal, TCS will take over Nielsen’s 350 people strong knowledge process outsourcing (KPO) centre at Baroda.
From fixed price, some of the BPO operations, at a later date, could move to a transaction-based pricing, giving TCS the opportunity to ride on efficiencies to improve margins.
TCS laid to rest fears on mega deals like these being value-disruptive. “We have protected our margins. There are in-built clauses for rate increase. Also, there is a clause for review of the deal at the end of five years. The margins won’t be very different from our overall margins,” Chandrasekaran said.
TCS would service Nielsen from its delivery centres in India and Latin America.
“We could consider opening new delivery centres in eastern Europe also,” chief executive officer S Ramadorai said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}