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TCS seals $2.25-bn deal with Nielsen, largest by any Indian IT firm

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22 December 2017

Tata Consultancy Services (TCS) has bagged the largest-ever outsourcing contract by an Indian IT company, sealing a $2.25 billion deal with television ratings measurement firm Nielsen.

The contract signed in October is a renewal of the 10-year deal signed in 2008 for $1.2 billion. The deal size was doubled in 2013 to $2.5 billion and extended by three more years till 2020.

Under the new deal, the terms of the agreement have been extended for an additional five years so as to expire on 31 December 2025, with three one-year renewal options granted to Nielsen, the TV rating firm said in a regulatory filing to the US Securities and Exchange Commission.

Under the terms of the new contract, the Rajesh Gopinathan-led TCS is assured of $320 million in business from Nielsen every year till 2020, $186 million in annual revenue from 2021 through 2024 and $139.5 million in 2025.

Nielsen put out a statement regarding the deal stating that the terms of the agreement have been extended for an additional five years, so as to expire on 31 December 2025, with three one-year renewal options granted to Nielsen.

 ''Nielsen has committed to purchase services from TCS from the Effective Date through the remaining term of the Agreement (the 'Minimum Commitment') in the amount of USD 2.25 billion, including a commitment to purchase at least USD 320 million in services per year from 2017 through 2020, USD 186 million in services per year from 2021 through 2024, and USD 139.5 million in services in 2025," the statement said.

TCS will 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, according to the regulatory filing.

Since TCS's ongoing contract has also been changed, it is not clear how Nielsen's renewed partnership will impact the IT firm's revenue and profitability, according to Moneycontrol. TCS has yet to comment to report.





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