Nielsen renews $2.25 billion TCS contract


Mumbai, Dec 22: IT giant Tata Consultancy Services bagged a $2.25 billion deal from Nielsen from television ratings company Nielsen in one of the largest outsourcing deals for Indian IT sector.
The two companies had struck a 10-year deal in 2008 for $1.2 billion, which was expanded to $2.5 billion in 2013.
According to Nielsen’s filing with the US Securities and exchange commission, Nielsen will purchase services from TCS in the amount of $2.25 billion, including a commitment to purchase at least $320 million in services per year starting 2017 till 2020. Further $186 million in services will be purchased per year between 2021 to 2024, and $139.5 million in services in 2025.
As part of the contract, TCS will globally provide Nielsen services in the line of application development, maintenance, business process outsourcing, financial planning and analytics among others.
This is the largest deal win for TCS since Rajesh Gopinathan took the company reigns in February this year.
“What we are seeing is that some deals are starting to come which are of significant size and some of them are coming in unexpected areas also… In more traditional ones like cloud and other areas also, deal sizes are significantly increasing,” Gopinathan had said during the last quarterly investor call.
The deal comes at a time when IT sector is rapidly switching to digital services where deal sizes are much smaller. Indian IT players comprised 67 per cent of global IT market in CY2016 (60 per cent in CY2012), however incremental gains are expected to be at a slower pace.