Tata Consultancy Services (TCS) has bagged the largest-ever outsourcing contract by an Indian IT company, sealing a USD 2.25 billion deal with television ratings measurement firm Nielsen, according to a report in Mint.
The contract is a renewal of the 10-year deal signed in 2008 for USD 1.2 billion. The deal size was doubled in 2013 to USD 2.5 billion and the contract was extended by three more years till 2020.
Under the terms of the new contract, the Rajesh Gopinathan-led TCS is assured of USD 320 million in business from Nielsen every year till 2020, USD 186 million in annual revenue from 2021 through 2024 and USD 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 December 31, 2025, with three one-year renewal options granted to Nielsen.
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.
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.
