Software major Tata Consultancy Services (TCS) is all set to bag a £600 million outsourcing contract from the UK Government for managing a state-sponsored pension scheme that is still in the works. TCS has emerged the successful bidder for a ten-year arrangement to ‘set up' and ‘administer' the National Employment Savings Trust (NEST), a scheme to be launched by 2012.
NEST, which is being designed and implemented to augment the existing employer-provided schemes, is expected to benefit nearly six million British citizens, when it becomes fully operational.
The contract is divided into two stages and runs for 10 years, with possible extensions for up to a further five years. The first stage will run to October 2010, allowing TCS to begin the activity required to set up and administer NEST. Prior to the expiry of the first stage, a decision will be made on whether to proceed with the contract for the remainder of the contract term.
TCS will be responsible for providing IT-enabled services related to employer participation, member enrolment, collection and reconciliation, cash management, accessing pension savings and administration of accounts.