TCS, Nest seal £840m deal to digitally transform pension administration

Tata Consultancy Services (TCS) and Nest, the largest workplace pension scheme in Britain, are strengthening their long-established partnership with a renewed focus on digitally transforming the latter’s scheme administration services.

This initiative for an initial period of 10 years is worth £840 million for the Indian IT firm. If extended to the entirety of its tenure of 18 years, the total maximum estimated contract value will be £1.5 billion.

seeks to elevate member experiences and bolster Nest’s mission of fostering improved retirement outcomes for UK residents.

In their journey since 2011, Tata Consultancy Services and Nest have forged a close-knit association since the inception of the digital, auto-enrolment pension scheme. With Tata Consultancy Services spearheading end-to-end administration services across all facets of the scheme, a user-friendly, multi-channel, self-serve model was constructed. This robust core facilitated the effortless scalability of Nest, ultimately becoming the go-to provider for millions of workers contemplating their retirement.

Gavin Perera-Betts — Nest Chief Customer Officer said: “I’m looking forward to continuing our journey with TCS and exploring the opportunities ahead of us. We have a strong foundation after many years of working together and they’ve proven their ability to deliver successfully for a scheme the size and complexity of Nest. This puts us in an excellent position to further advance our operations and build a truly digital offering that delivers a superior customer experience long into the future.

“The interests of our members are always our top priority and drive every decision we make and we’re rightly ambitious about what we can achieve for them. I’m confident that our partnership with TCS will enable us to develop our world class service to further support millions to enjoy a better retirement.”

Tata Consultancy Services, Nest to reinvent pension administration in £840m deal. Photo courtesy of Rameshng/Wikipedia.org.

The expanded partnership will witness Tata Consultancy Services aiding Nest in transforming its administration services via a state-of-the-art, digitally-equipped, omnichannel platform, powered by TCS BaNCS.

Tata Consultancy Services’ digital-first architecture, equipped with APIs, simplifies integration with ecosystem partners, including payroll providers and fintech firms. The platform will harness cutting-edge technologies and data analytics to render personalized, self-directed experiences to members. With this in place, Nest’s 12 million members and one million employers can access vital information when needed and in a manner most convenient to them.

TCS BFSI Platforms is a comprehensive digital ecosystem that supports the journeys of life, pensions/annuities, property/casualty, and health insurance providers. This Software-as-a-Service (SaaS) first platform is key in helping companies manage enterprise simplification, provide an exceptional customer experience, and achieve digital transformation.

Vivekanand Ramgopal — Tata Consultancy Services President of BFSI Products & Platforms said: “The purpose-driven partnership between Nest and TCS resulted in an immensely successful pension plan for the UK workforce, that is now a global benchmark on how an innovative, user-friendly, auto enrolment pension scheme should be run.

“We are delighted to further expand this long-standing partnership with Nest and support them in pushing the boundaries in offering compelling omnichannel member experiences to the new generation of workers entering the workplace. We are looking forward to leveraging our contextual knowledge, technology expertise and proven platform to help Nest realise our shared vision for the future.”