According to a TCS press statement, the agreement between TCS and Transamerica Insurance was inked in January 2018. The agreement guaranteed TCS at least $200 million in yearly income.
Tata Consultancy Services (TCS), India’s largest IT services business, has stated that its 10-year contract with Transamerica Life Insurance business, signed in 2017, has been terminated before completion owing to the present macroeconomic situation. The 10-year agreement was worth $ 2 billion.
In a statement, the company said: “Considering the present-day macro environment and specific business priorities, Transamerica and TCS have mutually agreed to end the administration arrangement for Transamerica life insurance, annuities, and other employee benefit products.”
According to a press statement from the IT services firm, the contract was inked in January 2018 between TCS and Transamerica Insurance. Through the agreement, TCS was guaranteed a yearly income of at least $200 million. According to the press release from January 2018, TCS was hired to consolidate the administration of more than 10 million policies onto a single, contemporary platform.
The administration of these products will migrate to a new servicing model over the course of around 30 months, they continued, and “Transamerica and TCS will work together to ensure a smooth transition.”
TCS has announced a 14.8% year-over-year (YoY) growth in its consolidated net profit for the fiscal year 2022–2023 (FY 2022–2023). For the three months that ended on March 31, 2023, profits totaled Rs 11,392 crore.
In terms of constant currency (cc), the income increased by 10.7% year over year (YoY). EBIT margin decreased 0.5% YoY to 24.5%, while earnings before interest and taxes (EBIT) were at Rs 14,488 crore. The final result was a 19.3% net margin.
