TCS bags record $2.25 billion outsourcing deal, largest ever for Indian IT firm

TCS - tata consultancy services office

Tata Consultancy Services (TCS) has won a $2.25bn outsourcing contract from Nielsen, as per media reports. This is the largest ever deal bagged by an Indian information technology firm. Under this contract, TCS is assured of $320mn in business from Nielsen every year, from 2017 to 2020, $186 mn in annual revenue from 2021 through 2024 and $139.5mn in 2025.

TCS has received the first deal from Nielsen in 2007 for $1.2bn, a 10-year contract. In 2013, the deal size was increased to $2.5bn and extended until 2020. And, now the term of the Agreement has been extended for an additional five years, set to expire on December 31, 2025, with three one-year renewal options granted to Nielsen.

Under the renewed contract, the companies have agreed to terminate the separate Global Infrastructure Services Agreement between them. TCS will now globally provide Nielsen with professional services relating to information technology (including application development and maintenance), business process outsourcing, client service knowledge process outsourcing, management sciences, analytics, and financial planning.

TCS is among world’s top 10 IT companies deriving ~40.2% of its revenue from BFSI vertical in FY17. Retail and distribution contributed 17.3% to TCS’ revenue, while communication, media & technology contributed 16.5% each to its revenue in FY17. Company’s revenue has grown at 17% CAGR over FY13-17.