TCS buys Pramerica Services unit from Prudential

The deal deepens the Indian IT giant’s relationship with a key client and expands its foothold in Ireland and Europe, said K Krithivasan, TCS’s president of banking, financial services and insurance. Pramerica staff will continue to provide a range of digital and technology services to Prudential. Global banks and insurers are accelerating efforts to shed non-core assets, like tech support, as they navigate through the economic uncertainty of the Covid-19 pandemic. Just this week, Deutsche Bank agreed to sell its technology services unit, Postbank Systems AG, to TCS by the year end. The price: one euro.

The Prudential deal is similar in structure and concept. Shedding the operation is expected to help the insurer trim costs, as it aims for $750 million in savings by the end of 2023. For TCS, Pramerica will bring multi-year services contracts, strategy expertise and a development center in Ireland. Under the agreement, which awaits regulatory approval, Prudential will keep the Pramerica Ireland entity.

TCs is Asia’s biggest exporter of software services with a market value of more than $130 bn. It has over 450,000 employees around the world and generates $22 bn in annual revenue from selling software services and products to a range of customers including Citigroup Inc, BT Group Plc, Panasonic Corp, and Qantas Airways.