TCS confident about PADA deal

MUMBAI, INDIA: Tata Consultancy Services (TCS) Ltd, India's IT major which has won the £800-million UK’s Personal Accounts Delivery Authority (PADA) deal, believes that it’s one of the most significant contract for the company.

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It is multi year contract, where TCS will manage the National Employee Savings Trust (NEST) scheme.

However, the political shift in the UK that brought the coalition government into power recently has raised eye brows against TCS PADA, particularly from the Conservative Party.

The Conservatives are strongly against awarding the deal to the Indian IT major, since the previous government had signed the deal just before the country’s elections were held.

And now with the UK’s Treasury Department decision to increase the savings nearly to $44 billion in way of 25 per cent cost-cutting across government departments, the TCS PADA deal along with several other contracts from other companies are likely to undergo re-negotiations of the existing contracts.

There has been several speculations made about TCS and the out come of deal signed with UK’s PADA. However, TCS CEO and managing director N Chandrasekaran is highly confident about the future of the TCS PADA deal.

“The UK government is under taking due diligence at present. We are in constant talks with client and we are protected under the contractual agreements,” Chandrasekaran said, on the sideline of company’s quarterly results announcement on Thursday in Mumbai.

About the regulatory changes happening in various countries and regions, Chandrasekaran commented, “Regulatory changes will keep on happening in different regions and countries. And for that, we need to change our business model and also will need to adapt to those changes whether it be Europe, the US, China or any emerging markets.”