TCS bags $2.5 billion contract from UK's Aviva, its biggest yet

A 15-year outsourcing deal disclosed by Tata Consultancy Services Ltd (TCS) on Tuesday is worth at least $2.5 billion in value, an executive aware of the contract said.

That would make it possibly TCS's largest outsourcing deal The company's biggest deal before this was a $2.25 billion contract signed with Nielsen in December 2017.

Mumbai-based TCS announced it has won a contract renewal from British insurance group Aviva that runs till 2039. The deal renews.

TCS's current engagement, under which Friends Life had initially awarded a $2.2 billion, 15-year contract to the company in 2012. Aviva acquired Friends Life in 2014.

Under the ongoing partnership, which began on 1 March 2012, TCS is overseeing administration responsibility for 3.2 million policies offered by Aviva until 2027, and was assured of $146 million in revenue every year.

The new deal expands the coverage to have TCS oversee 5.5 million life and pension policies offered by Aviva. A $2.5 billion deal for 15 years implies the company would earn at least $165 million in revenue every year.

The renewal of the deal marks the third such mega deal (IT contracts valued at over $1 billion) won by TCS under K.