Tata Consultancy Services (TCS) has bagged an order from Pearl Group in the U.K. to handle its business processes, the company announced Tuesday.
An interesting part of the deal is that Pearl Group staff will not lose their jobs as a result of the outsourcing contract, but will be moved to TCS in the U.K. Under an agreement with Pearl Group, an insurance and pensions firm in Peterborough, the business processes of Pearl Group will be outsourced to a TCS subsidiary to be set up in Peterborough.
The new subsidiary will employ about 950 of the 1,100 employees on Pearl Group's current staff, with the balance staying on at Pearl Group.
The TCS subsidiary will specialize in BPO (business process outsourcing) for life and pension businesses, starting with Pearl Group's closed-books portfolio, according to a statement Tuesday by TCS in Mumbai. The subsidiary will also focus on offering similar services to other companies in the industry.
The deal with Pearl Group will generate revenue of more than £480 million ($842 million) over the next 12 years, TCS added.
TCS has been operating in the U.K. and Ireland since 1975 and has eight offices in these markets, including a development center in Guildford, U.K.