Tata Consultancy Services (TCS) has lately possessed a contemporary $2.25-billion contract from its current client, world TV rating measurement company Nielsen, creating it to be biggest ever such deal for the Indian IT business. TCS’ relationship with Nielsen began in 2007 with a 10-year, $1.2-billion contract that was additional extended to 2020 taking the entire price to $2.5 billion.
A recording with the SEC aforesaid, “Nielsen is responsible to accumulate services from TCS from the Effective Date through the remaining term of the Agreement (the ‘Minimum Commitment’) within the quantity of $2.25 billion, as well as a commitment to buy a minimum of $320 million in services annually from 2017 through 2020, $186 million in services annually from 2021 through 2024, and $139.5 million in services in 2025.”
This fresh $2.25bn contract comes as a giant uplift for TCS because its growth has softened into single digits and sets up a robust base for the approaching years. The Nielsen filing additionally aforesaid, “In reference to the entry into the agreement, the parties have in agreement to terminate the separate world infrastructure services agreements between them as of the effective date and embody the services provided under that in or a lot of statements of labor arising below the agreement.”
TCS can offer Nielsen with services concerning data technology, business method outsourcing, consumer service information process outsourcing, consumer service information method outsourcing, management sciences, analytics and financial designing.
On TCS catching this contract, Sid Pai, managing partner, Tekinroads, a technology consulting firm, said, “It could be a nice achievement and a feather in their cap. it’s very uncommon and doesn’t happen fairly often.” Pai additionally noted that considering that Nielsen was already an associate existing client, TCS has showed its superior skill in extending their contract with further multi-billion dollar deal.
Supplementary to the sale, Citi additionally signed associate agreement for TCS to supply, through CGSL, process outsourcing services to Citi associated its affiliates in a collective quantity of $2.5billion over a time of 9 and a half years.