The Department for Education has awarded Tata Consultancy Services (TCS) a 10-year contract to manage the pensions of more than two million teachers, leading to a digital transformation of the scheme administration.
TCS will be responsible for operating the Teachers’ Pension Scheme, which is the largest public sector pension scheme of its kind in the UK. This move will strengthen TCS’s presence in the pensions and UK public sector industries.
Capita, which had been managing the service for over 20 years, lost the contract to TCS. In 2021, Capita secured a contract extension worth £60 million over four years from the Department for Education.
Leveraging its extensive experience, TCS, India’s largest IT supplier, plans to develop a digital-first self-service pension system. This will enable pension members to access their accounts at any time and provide personalized insights to support informed decision-making.
Vivekanand Ramgopal, President of Banking, Financial Services, and Insurance at TCS, emphasized the company’s commitment to enhancing customer experience in the UK pensions industry. TCS aims to continue investing strategically in its platform and become the preferred growth and transformation partner for life and pensions companies in the UK.
In addition to its considerable IT resources in the UK, TCS has a subsidiary called Diligenta, which operates under UK regulations and specializes in business process outsourcing services for the UK life and pensions sector.
Securing the contract with the Department for Education represents a significant achievement for TCS in the UK public sector. While Indian IT services firms have faced challenges in this sector, TCS has been successful in building a solid customer base. Recently, TCS won a contract with the UK’s Financial Ombudsman Service to develop crucial systems for the digital transformation of its dispute resolution service. Amit Kapur, UK head at TCS, highlighted that the deal further strengthened their collaboration in the UK public sector financial services.
According to Tussell, an organization that analyzes government spending data, TCS generated sales of nearly £31 million from the UK public sector in 2017. This figure increased to £52 million by 2019 before being affected by the pandemic. The UK public sector represents significant growth potential for TCS and other Indian services firms.
