Tata Consultancy Services, Transamerica part ways, dissolve $2bn digitization deal
Tata Consultancy Services (TCS), an Indian IT firm, and American insurance provider, Transamerica, have jointly decided to dissolve their $2 billion contract due to a challenging macroeconomic landscape.
The ten-year deal, inked in early 2018, tasked TCS with the digitization of over 10 million policies from Transamerica onto a unified platform, a task that would have seen Transamerica’s US insurance and annuity businesses transform their administration methods.
This contract termination implies that the management of the policies will transition to a fresh servicing model, a process that TCS estimates will take roughly 30 months.
The initial agreement aimed at enabling Transamerica to swiftly improve its digital capabilities and simplify the service of more than 10 million policies via a modern, integrated platform, potentially leading to increased sustainable growth through enhanced customer experiences. The cancellation represents a significant change in strategic direction for both organizations.