SOURCE: PADA
DATE: March 2nd, 2010
Back in December, looks like TCS was the only company in running for the UK Pension body deal (PADA) (LINK). UK Personal Accounts Delivery Authoirty have announced today that the deal to is won by TCS. Personal Accounts Delivery Authority, announced that the deal will be signed end of this month and could be possibly extended for another 5 years. This is a big win for TCS. The debate on how the UK goverment wants to cut £3.2 billion from their IT budget and sending public sector, federal government jobs offshore will continue. But looks like this opens up the doors for other public sector deals in the UK to go offshore. An earlier deal done by TCS ( TCS-CARDIFF DEAL) was announced more in the lines of that this is a partnership with no job loss.
The reality with signing up TCS or Indian offshore vendors for deals is that they will want to leverage their offshore operation center and for such large deals there will be job displacements. The challenge the vendors will continue to face is how to offer delivery capabilities within the country. Working with government agencies across US or UK is a different working model compared to corporates. Government agencies are more process oriented, more bureaucratic, have a larger community and social view of their ‘clients’ and the budget comes from public tax dollars. Typical margins in government deals are also less and the deals have to be more transparent and success and failures are more public. TCS has had some snafus in some Indian government deals ( LINK) but continues to strengthen it’s government sector offerings.
Mohit Sharma is the CEO of Corrystone Global Partners. Corrystone is a specialized globalization firm providing advisory, education and staffing services to firms in US and India. We work with firms in the US which are exploring low cost options for IT, Business Process work and looking at ways to further optimize cost and manage operational risk. For firms based in India we help with marketing presence , M&A & client management services in the US. Contact us at info@corrystone.com to learn more about how we could help you.
The press release from PADA:
PADA is pleased to confirm that Tata Consultancy Services (TCS) has been named as thesuccessful bidder for NEST scheme administration services. PADA intends to sign a contract
with TCS later this month.
The contract is divided into two stages and runs for 10 years, with possible extensions for up to
a further five years. The first stage will run to October 2010, allowing TCS to begin the activity
required to set up and administer NEST. Prior to the expiry of the first stage, a decision will be
made on whether to proceed with the contract for the remainder of the contract term.
Tim Jones, PADA Chief Executive said:
“This is excellent news. As we proceeded through our detailed procurement process TCS
emerged as an extremely strong bidder, both in terms of their capabilities in pension
administration and in their ability to provide value for money for NEST members. Signing the
contract early, in stages, allows us to get on with our work to deliver NEST.”
Angela Eagle, Minister of State for Pensions and the Ageing Society, said:
“I congratulate TCS on their success in the competition to provide the scheme administration
services for NEST, which will be central to the new pensions landscape. Together with
automatic enrolment, NEST will help millions of people save for their retirement, with a
guaranteed employer and Government contribution.”
N. Chandrasekaran, Chief Executive Officer and Managing Director, Tata Consultancy
Services said:
“TCS is delighted to be confirmed as the preferred bidder to deliver the NEST scheme
administration solution and services. This project will make a difference to millions of people in
the UK and we are fully committed to it. Our selection as the preferred bidder demonstrates our
strong domain and solution expertise and highlights our commitment to the UK public sector.
We are happy to be part of a project that benefits the broader UK economy by helping create
real value for UK society and delivering world class services to its citizens. “
-ends