British life and pensions consolidator Phoenix Group has expanded its partnership with IT major TCS by awarding a new multi-year IT outsourcing deal to drive growth plans.
Though the companies did not reveal the deal value, Indian media reports suggest that it could be in the range of $2bn on par with the Transamerica deal.
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Under the agreed terms of the agreement, TCS will transform pensions and savings operations of Standard Life onto its TCS BFSI Digital Platform.
The new agreement will expand the overall scope by a further 4.2 million policies. Diligenta, the regulated subsidiary of TCS in the UK, will now manage nearly 10 million policies on behalf of Phoenix Group.
TCS claims that its automated, open architecture and agile platform will enable Standard Life to collaborate with a wide array of innovators and experts to develop its wider workplace product.
It will also accelerate the insurer’s speed to market and help it meet the evolving needs of workplace advisers, employers and their scheme members, the technology vendor added.
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By GlobalDataPhoenix Group acquired Standard Life Aberdeen’s insurance business in a cash and stock deal valued at approximately £3.24bn.
Additionally, TCS also agreed to expand its presence in Scotland and set up a new technology and operational service hub in Edinburgh.
It has also been agreed that many Standard Life Assurance employees will move to TCS by the end of the transformation.
Standard Life Assurance CEO Susan McInnes said: “We believe a partnership model is absolutely the right approach. It enables us to work with a leading global organisation with great expertise and to respond to the dynamic environment that we’re operating in.
“Working in partnership with TCS will support our growth strategy in the workplace market and bring benefits to workplace clients and scheme members. It will accelerate our ability to innovate and efficiently evolve our proposition in the future, whilst continuing to deliver excellent customer service.”
TCS president of BFSI Platforms Suresh Muthuswami said: “Our focus will be to bring the power of digital technologies to further improve customer experience to Standard Life Assurance’s customers including employers, Employee Benefit Consultants and members.
“We will be leveraging our presence in Edinburgh to enable Standard Life Assurances’ workplace clients and their advisers to collaborate and envision the future digital transformations to help shape our future offering.”
