India-based systems integrator Tata Consultancy Services has won what is likely to be a £600m contract for the Personal Accounts Delivery Authority (Pada) National Employment Savings Trust bid (NEST).
The 10-year contract, which will see TCS deliver the IT system for the UK’s national pensions scheme, will be signed later this month.
NEST is the UK government’s low-cost pension scheme previously known as personal accounts. The scheme is due to come into effect in 2012.
This is believed to be the largest public sector contract that any Indian IT firm has won in the UK and is expected to open the way for other Indian vendors within the public sector.
The deal follows other big wins for TCS comprising a £150m contract in November from local government authority Cardiff Council, and a £55m deal with the UK's Child Maintenance and Enforcement Commission.
TCS was the only firm left in the running for the contract when other outsourcing firms withdrew after deciding that the project was not commercially viable.
According to the Financial Times, Pada said the value of the contract will depend on how many people stay in the new personal pensions scheme. But if between four and five million people and some 800,000 employers do, the contract would be worth about £600m over the 10-year period.
To read an interview with Tim Jones, chief executive of Pada regarding the TCS win, click here.