Tata Consultancy Services (TCS) has announced an expansion of its long-standing partnership with Phoenix group, the UK’s largest long-term savings and retirement provider, to digitally transform the latter’s ReAssure business using the TCS BaNCS.
The contract for the end-to-end business transformation, including administration services, is valued at over £600 million.
Phoenix group acquired ReAssure, a UK-based life insurance provider, in 2020. The group has now engaged with TCS to drive synergies and enhance the customer experience for ReAssure’s policyholders.
TCS Solution will help Phoenix transform end-to-end customer service through self-service across channels and analytics.
“At a strategic level, this business transformation initiative will integrate the ReAssure business into the resilient platform that has been enabling Phoenix group to quickly respond to changes in the environment and seize new opportunities for growth,” said a press release.
TCS will leverage its Innovation Lab in the UK where its contextual experts and solution architects look for new ways of harnessing digital technologies to enhance the experience for policyholders, advisers, employers and operational staff, and to continuously improve the service quality for Phoenix group’s customers.
Changing deal type
This ’megadeal with comes as a surprise, especially as experts believed that Indian IT majors will struggle to maintain deal momentum due to the poor macro environment in the US, UK and European markets.
“The TCS-Phoenix deal and even Cognizant’s $1-billion deal in January indicate that even while the macro environment is bad, it might not affect IT companies adversely. Companies are going for cost optimisation deals now to save on costs — which is why they need Indian IT companies,” said IT expert Pareekh Jain.
“In this macro environment, we are seeing the deal type changing, where companies are not roping IT majors for deals around digital transformation but rather for cost optimisation,” he added.