TCS Bags the Biggest Ever Indian IT Outsourcing Contract
The partnership was signed in October this year and is a renewal of TCS’ existing collaboration with Nielsen.
India's leading IT exporter Tata Consultancy Services (TCS) has bagged a $2.25-billion outsourcing contract from Nielsen, a television rating measurement firm.
According to LiveMint, this is the largest deal ever bagged by an Indian IT firm.
The partnership was signed in October this year and is a renewal of TCS' existing collaboration with Nielsen. The two companies had struck a 10-year deal in 2007 for $1.2 billion, which was expanded to $2.5 billion and expanded to another three years in 2013.
The term of the Agreement has been extended for an additional five years, so as to expire on 31 December 2025 with three one-year renewal options granted to Nielsen. In connection with the entry into the Agreement, the parties have agreed to terminate the separate Global Infrastructure Services Agreement between them as of the Effective Date and include the services provided thereunder in one or more Statements of Work (‘SOWs’) arising under the Agreement. TCS will globally provide Nielsen with professional services relating to information technology (including application development and maintenance), business process outsourcing, client service knowledge process outsourcing, management sciences, analytics, and financial planning.
Under the new deal, the terms of the agreement have been extended for an additional five years so as to expire on 31 December 2025, with three one-year renewal options granted to Nielsen, the TV rating company said in a regulatory filing to the US SEC.
Nielsen has committed to purchase services from TCS from the Effective Date through the remaining term of the Agreement (the ‘Minimum Commitment’) in the amount of USD 2.25 billion, including a commitment to purchase at least USD 320 million in services per year from 2017 through 2020, USD 186 million in services per year from 2021 through 2024, and USD 139.5 million in services in 2025.
Nielsen, in a regulatory filing to the US SEC
The filing stated that the Mumbai-based firm will globally provide Nielsen with professional services relating to IT – including application development and maintenance – BPO, client service knowledge process outsourcing, management sciences, analytics, and financial planning.
This deal is considered as a huge boost for Rajesh Gopinathan, who took over the post of chief executive officer (CEO) in February from N Chandrashekharan when the latter was appointed as the chairman of Tata Sons Ltd, the group holding company from Mumbai told LiveMint.
(With inputs from PTI and LiveMint)
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