TCS signs 15-yr deal for Ireland's new pension scheme; stock rises

Shares of Tata Consultancy Services (TCS), the country’s largest software exporter, rose by 0.65% to ₹4,103.65 apiece on the BSE in early trade today after it secured a deal. The IT major has signed a 15-year agreement with Ireland's Department of Social Protection (DSP) to implement and maintain ‘My Future Fund,’ a new auto-enrolment pension scheme.

At the time of reporting, TCS shares were trading at ₹4,092.70, with a market cap of ₹14,80,774.68 crore. The IT heavyweight opened higher at ₹4,099.95 against the previous close price of ₹4,077.15. Over the past month, the stock has dropped 4.16%, while it surged 7.07% in the last six months. On the year-to-date (YTD), the counter surged 7.34%.

TCS informed exchanges that it will deliver a digital solution to facilitate the automatic enrolment of around 800,000 workers in Ireland. TCS's BaNCS platform will be central to the project, managing enrolment, record management, and benefits distribution, with services delivered through TCS’s Global Delivery Centre in Letterkenny, County Donegal, Ireland. This initiative follows Ireland's recent enactment of the Automatic Enrolment Retirement Savings System Bill and conclusion of a tendering process by the Department of Social Protection.

“TCS has a wealth of relevant experience, having provided similar services in other countries. My officials and I will be working hard alongside TCS, the Revenue Commissioners and payroll software developers to make sure that My Future Fund is delivered on time and to the highest standard,” says Heather Humphreys, Ireland’s Minister for Social Protection.

TCS recently created an accessible self-service platform on the National Employment Savings Trust (NEST) in the U.K. for over 13 million workers.

“We look forward to partnering with the Department and the new NAERSA organisation to implement the scheme. TCS has expertise and experience in delivering critical transformation projects in the UK and Ireland. We will leverage this experience and our knowledge of the market to make the pension system more accessible, transparent and efficient for workers in Ireland,” said Vivekanand Ramgopal, president of BFSI products & platforms at TCS.

TCS claims that ‘My Future Fund’ pension scheme will offer thousands of workers a pathway to save and invest for retirement, benefiting employers, operational staff, and pensioners by improving pension record management, ensuring prompt payments, streamlining scheme finances, and providing user-friendly digital access.

Tata Consultancy Services (TCS) posted a 5% year-on-year (YoY) increase in net profit, reaching ₹11,909 crore, up from ₹11,074 crore in the same period last year. This figure, however, was below market expectations of ₹12,450 crore. Sequentially, TCS's profit saw a dip from ₹12,040 crore in the April-June quarter. Revenue from operations increased by 7.6% YoY, reaching ₹64,249 crore compared to ₹59,381 crore in the corresponding quarter a year ago.