This decision comes after a rigorous and extensive, year-long, selection process by Pearl Group Ltd, which examined tenders from a number of leading companies before it decided to choose TCS. The agreement will mean that a new company, a subsidiary of TCS, will be set up and will employ about 950 of Pearl Group's current 1,100 staff, with about 150 staying with Pearl.

The new subsidiary will specialise in BPO for life and pension businesses, starting with Pearl Group's closed books portfolio. It will also focus on offering similar services to other life companies, presenting it with an opportunity for significant future growth as Business Process Outsourcing (BPO) is rolled out across the life assurance industry. This deal will generate revenues of over 480m pounds ($847m) over the next 12 years as a result of creating a new platform beyond IT services.

Commenting on this strategic initiative, S. Ramadorai, CEO and Managing Director at Tata Consultancy Services said, "This deal validates our strategy of pioneering the next generation of Business Process Outsourcing opportunities. Our extensive experience working in the insurance industry together with our excellence in technology will help us emerge as a significant player in life assurance and pensions administration services and help us continue our strong growth momentum."

Phiroz Vandrevala, executive vice-president and global head of corporate affairs at Tata Consultancy Services said, "TCS is delighted to be chosen by Pearl, a decision based on our long-standing work in the UK insurance industry, our track record of working for five of the top 10 UK insurance companies and the result of our 14 year relationship with Pearl. TCS will sign a long-term lease at the Peterborough site and our intention is to establish a BPO centre of excellence for the UK there."

A.S. Lakshminarayanan, VP and country manager, United Kingdom & Ireland at Tata Consultancy Services said, "TCS has been recognised for its outstanding contribution to the United Kingdom's knowledge economy, and together with the strength and heritage of Pearl and its professionals, we will create a new force in life and pensions BPO in the UK."