TCS Bags Danish Insurance Deal Over Competition
Indian IT companies are clearly at an edge, when it comes to bagging global deals. The countries largest IT services company, Tata Consultancy Services (TCS) is likely to enter into a four-year deal with Dannish insurer Tryg, after the latter has terminated its IT operating agreement with Computer Sciences Corporation (CSC) effective August next year.
“Tryg expects to enter into a new operating agreement with TCS. The agreement will run for a minimum of four years and ensure more modern and sustainable IT operations in Tryg with an economy meeting the previously announced cost-saving targets the company announced on its website.
Analysts expect the deal may be valued at around $200-250 million. Tryg is the second largest general insurer in the Nordic region, and has presence across Denmark, Norway and Sweden. According to the information available on the company’s website, it has around 3,800 employees.
In 2011, the New York Stock Exchange-listed CSC had signed a seven-year IT outsourcing contract renewal with Tryg worth $348 million. Under this contract, CSC was given the mandate to provide IT infrastructure services including help-desk, mainframe, midrange, network, web hosting, project work, print and distributed computing among others
Previously, CSC signed a $192 million IT outsourcing contract renewal deal with Danish insurer in 2008. Under the terms of the contract, CSC provided IT infrastructure services, including help desk, mainframe, mid-range, network, web hosting, and print and distributed computing.
TCS is currently amongst the fastest-growing IT services companies worldwide. It has efficiently leveraged its broad and deep technical and domain capabilities. It has revamped its sales and marketing capabilities, historically its weak spots. According to a Forbes report, TCS’ market valuation recently crossed $60 billion, ahead of Accenture’s $50 billion and HP’s $43 billion, but trailing way behind IBM’s $202 billion.
In geographical reach, the North American market – a vital market for India’s outsourcing companies – accounts for half of TCS’ revenues. But a fifth of its revenues come from emerging markets and the company is currently focusing strongly in the markets in Europe, says the report.
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