Tata Consultancy Services Bagged $2.25 Billion Nielsen Outsourcing Contract
India’s leading information technology firm Tata Consultancy Services (TCS) has won a $2.25 billion outsourcing contract from television measurement company Nielsen. The largest-ever deal bagged by an Indian information technology firm with such a whopping amount. Way back in 2007, the partnership had first signed a deal worth $1.2 billion; 10-year contract to the Mumbai-based company and later the deal get more than doubled to $2.5 billion in 2013 with an extension of three more years until 2020. Under $2.5 billion contracts, Nielsen has committed to purchase from TCS at least $320 million every year from 2017 to 2020, $186 million in annual revenue from 2021 through 2024, and $139.5 million in 2025.
“The deal marks the renewal of the Tata Consultancy Services relationship with Nielsen by extending the existing $2.5 billion deal for another five years to 2025 with three one-year renewal options granted to Nielsen,” the company said in a filing to the United States Securities and Exchange Commission.
The renewal of Nielsen’s $outsourcing contract is seen as the first significant milestone for Rajesh Gopinathan who became the chief executive officer of TCS in February 2017 after N.Chandrasekaran was appointed the chairman of Tata Sons Ltd – the holding company of the group. Tata Consultancy Services, now once again is committed to globally provide Nielsen with professional services relating to information technology, business process outsourcing, client service knowledge process outsourcing, analytics and financial planning.
Along with the new agreement, the two companies have agreed to terminate the separate Global Infrastructure Services Agreement between them as of the Effective Date and include the services provided thereunder in one or more Statements of Work (‘SOWs’) arising under the Agreement,” Nielsen said in the filing. Due to the ongoing contract, TCS has once again retained its first position for creating investor wealth worth nearly 2.50 lakh crore in the last five years, leaving behind HDFC Bank and Mukesh Ambani’s RIL.
“We experienced robust volume growth in the second quarter with a good demand across multiple industry verticals. This quarter demonstrates our increasing success with newer customers and large deals,” said Rajesh Gopinathan.