Nielsen boosts TCS contract to $2.5 billion

Tue Feb 12, 2013 2:28pm IST

Related Topics

Stocks

   

REUTERS - Nielsen Holdings NV (NLSN.N), best known for its TV ratings, increased the size of its contract with India's top software services exporter, Tata Consultancy Services Ltd (TCS.NS), to $2.5 billion from $1 billion.

The expanded contract, among TCS's largest, comes at a time when there are expectations that India's $100 billion IT services sector may be turning a corner helped by acceleration in IT spending by existing customers and addition of clients.

Nielsen also extended the contract by three years to 2020, and said it would buy at least $100 million in services annually from TCS, according to a regulatory filing.

The number of clients contributing $100 million or more to annual revenue rose to 16 from 14, TCS said in January.

Under the 10-year contract signed in 2007, TCS provided IT and business services to Nielsen.

TCS already has a multi-year outsourcing contract worth $2.5 billion with Citigroup Inc (C.N) and a $2.2 billion contract with UK-based Friends Life.

TCS, a unit of the salt-to-steel Tata Group conglomerate, boasts of major clients including General Electric (GE.N), British Airways and Sony Corp (6758.T).

The company competes with rival Indian software providers Infosys Ltd (INFY.NS) and Wipro Ltd (WIPR.NS) as well as multinational firms such as IBM (IBM.N) and Accenture Plc (ACN.N) for outsourcing deals.

TCS shares closed at 1,414.70 rupees on Monday on India's National Stock Exchange.

Nielsen, which has a market value of $11.9 billion, closed at $32.67 on the New York Stock Exchange. (Reporting By Aditya Kondalamahanty and Supantha Mukherjee in Bangalore; Editing by Sriraj Kalluvila)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage