TCS inks $700 million digitalization deal with insurer Phoenix Group

(Bloomberg) — Tata Consultancy Services Ltd. has secured its largest UK deal in three years with a new agreement with an insurance services provider.

London-based Phoenix Group Holdings Plc. has agreed to a contract worth more than £600 million ($723 million) to digitally transform its product offering, TCS said in a statement on Wednesday.

As part of the deal, Asia’s biggest outsourcer will integrate Phoenix-owned life and pensions provider ReAssure’s heritage business on its core financial services platform. A TCS unit in the UK will also manage customer administration and servicing of ReAssure’s 3 million policies.

Mumbai-headquartered TCS already provides some services for the Phoenix Group and the expansion of the partnership will help the British company become more competitive, TCS said.

Indian software services firms like TCS are bracing for a slowdown in tech spending given uncertainty about the economic outlook in 2023. The Russia-Ukraine war, now entering its second year, and soaring inflation have dampened the mood in Europe, though TCS has been upbeat about business prospects in the UK.

“If you look at Europe there is obviously a real big issue out there,” TCS Chief Executive Officer Rajesh Gopinathan said last month. “But if you look at North America and UK, the environment there is very different, very supportive.”