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TCS bags £150-m deal from UK Govt body


Our Bureau

Mumbai, Nov. 3 Tata Consultancy Services is understood to have bagged a £150-million (Rs 1,164 crore) software implementation contract from the Cardiff City Council, its first win from the local government space in the UK.

The Cardiff Council is the governing body for the city of Cardiff, which is the capital of Wales in the UK. It comprises 75 councillors, representing 29 electoral wards.

According to the 15-year arrangement, TCS will support the council’s information, communications and technology function and take over the management of its SAP implementation from Logica CMG (a European IT services company), European analyst firm Ovum said in a note here on Tuesday. However, a TCS spokesperson did not give further details. The Cardiff contract will see the company implement ‘DigiGov Solution’, now live in Andhra Pradesh.

“This collaboration will help us make savings in our spending on technology such as hardware and software, and enable the Council to raise money through the development of technology-enabled products,” the Cardiff Council Leader, Mr Rodney Berman, said.

The Cardiff deal win is unique in the sense it does not involve any Council staff being transferred to TCS.

“Cardiff (deal) is an insource which is set to achieve major efficiency savings, improve service delivery, and protect and enhance local jobs. It aims to sell shared services across the public sector in Cardiff,” Dr Peter Clarke, Principal Analyst, said in the report. IBM and BT Global Services were the other companies competing for this project, it is learned.

Cardiff wants to use its new shared service delivery model for joint working between all the public bodies delivering services in the city.

In April this year, TCS had registered its first deal win from the UK public sector when it bagged a £65.7-million engagement from the Child Maintenance and Enforcement Commission. In the next three years, it expects to generate 10 per cent of its revenues from government projects.

Related Stories:
TCS on course with expansion plans
TCS’ new Chief Executive sees more headroom for growth
TCS gets $25-m deals for financial products

More Stories on : New Business | E-Governance | Software | Tata Consultancy Services Ltd

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