TCS Signs Multi-Million Dollar Deal With DNB

TCS said today that it has been selected by DNB to drive the company’s strategic transformation by leveraging information technology. The multi-million euro deal would stretch over a period of six years and would involve the delivery of application maintenance and development services across DNB’s IT portfolio, spanning channels, core-banking and master data areas.

DNB is Norway’s largest financial services group with a 32% market share in the retail market and group assets exceeding 2000 billion NOK (USD 329.28 billion). It offers the services of loans, savings, advisory services, insurance and pension products for retail and corporate customers and the public sector. It has presence in 19 countries.

This deal win would result in increased growth in the geography of Continental Europe, vertical of BFSI and service line of Application Development and Maintenance. In Q1FY14, these areas grew by 14%, 8% and 9.3% respectively. Of the total revenues, these areas contribute to 9.9%, 43% and 42.3% respectively.

TCS has been seeing strong client parameters. It added clients across brackets in various service revenue brackets. This resulted in a strong order pipeline for TCS. Its client additions are as follows,

Among the key deals that TCS has won lately in Europe includes being engaged by a leading Nordic airline in an end to end IT outsourcing contract to deliver IT infrastructure services, application development and maintenance and drive innovation to help the airline in its transformation.

Large deal wins and strong execution abilities have led TCS to ride through the phase of slower demand for traditional services and slowdown in geographies like Europe. The company managed to perform well and post strong financial results even when the industry was steering on a rocky road. The continual of bagging these long-term contracts that provide for ensured revenue stream and potential for renewal strengthen the outlook for TCS.