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.
Tata Consultancy Services, Transamerica mutually terminate $2bn contract amid economic headwinds. Photo courtesy of Rameshng/Wikipedia.org.
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.
