TCS wins $16 million contract from Australian firm

New Delhi: Indian IT giant Tata Consultancy Services is on an expansion spree. The IT major has just signed a $16 million outsourcing contract with Australian firm AGL.

The agreement supports AGL's strategy of moving from internal IT to an outsourced solution. It will help the Australian firm save around $60 million a year once its new retail solution is fully implemented, reported consultant news.

This saving is part of AGL's company-wide, cost-saving program previously disclosed to the market.

The deal will reduce the number of fulltime employees engaged by AGL in IT support from more than 300 to about 20, which is already more than 80 per cent complete, according to the company.

IBM, Tata and Accenture are the three main technology services companies contracted to work on AGL's IT revamp.

TCS facing resource crunch for its $1.5 billion contract?

Tata Consultancy Services is close to buying an $1.5 billion worth outsourcing contract with the UK-based Prudential Insurance.

Sources in the industry say, the company is in initial discussions with investment bankers for a possible deal. If successful, this will the IT major’s second biggest deal in the insurance space. But there is bit of a spoiler there.

According to the latest Forrestor report, over 60% of the captive centres in India are struggling due to lack of management support, spiraling costs, skyrocketing attrition and a lack of integration.

US-based Citibank has also put its captive unit— Citigroup Global Services — on the block. According to unconfirmed media reports Firstsource, WNS and Genpact are the front runners in the race for acquiring the BPO business unit of Citigroup Global Services (formerly e-Serve).

TCS had earlier bagged a $800 million deal from the UK-based Pearl Group — considered the single biggest in the Indian financial outsourcing segment.