TCS’s UK arm bags $200 mn contract

MUMBAI: In a move to consolidate its European businesses, Tata Consultancy’s UK subsidiary Diligenta has managed to bag a $200-million order from Canadian financial services major Sun Life Financial. TCS said on Wednesday that the 10-year order is for outsourced services to the Canadian company’s UK operations.

“UK and overall Europe have been growing significantly for TCS, as it reflects in our last quarter results. When we took over Diligenta in 2006, we know that it would take nearly a year-andhalf to get a foothold in the European markets in the BPO space. This deal is a step forward — nearly doubling our revenues from Europe in the near term,” Diligenta chairman and TCS executive director, Phiroz Vandrevala said.

TCS’s services are expected to commence in May this year. Earlier, Diligenta had been working with Sun Life Financial as preferred supplier since October 2007. Analysts said the deal will take TCS’ Europe strategy forward, even as worries over US demand fall continue.

Suveer Chainani, analyst at Macquire Research, said: “The Sun Life deal is not majorly material in terms of its effect on the EPS, but it certainly is material in strengthening the trend that the order from financial services from Europe would continue to grow for the company.”