TCS Secures 3-Year Extension With SPARSH To Streamline Defence Pensions

Tata Consultancy Services is a global technology firm based in India, focusing on information technology services and consulting. With its headquarters in Mumbai, it is a member of the Tata Group and has operations in 150 locations across 46 nations. It ranks as the second-largest Indian company in terms of market capitalization.

TCS and SPARSH partnership update

On November 26, TCS announced that it has extended its collaboration with SPARSH, India’s pension scheme for defence personnel, for an additional three years. As part of this three-year extension of the contract for the ‘System for Pension Administration—Raksha’ (SPARSH), India’s leading IT services firm will continue to optimize and improve pension services for over 3 million retired defence pensioners across the nation.

All about SPARSH

The System for Pension Administration—Raksha (SPARSH) is an initiative by the Indian government aimed at simplifying the pension distribution process for over 3 million defence pensioners. 

By centralizing the entire process and removing the service fees charged by banks, the SPARSH program has helped the government save around Rs. 250 crore each year, according to a company filing with the stock exchanges. Under the extension contract, Tata Consultancy Services (TCS) will be responsible for maintaining both the hardware and software aspects of the system for the next three years, while also providing important updates to the SPARSH program.

TCS will launch pension in 2020

TCS began implementing pension processing on SPARSH in October 2020, over four years ago, aimed at creating an integrated, secure, and efficient pension disbursement system for India’s defence personnel. Thanks to digital transformation, the time taken for pension processing has dramatically decreased from 12 to 18 months down to just 14 days. Payments for new pensioners are now completed in only five to seven days.

The company’s contribution to the One Rank, One Pension (OROP) scheme stands out as a significant accomplishment. This scheme ensures that defence personnel of the same rank and service length receive identical pensions, regardless of their retirement date, as stated in a press release from TCS on November 26.

Tej Paul Bhatla, the Senior Vice President and Business Head, said

“The expansion of our collaboration with SPARSH underscores TCS’s expertise in leading extensive digital transformation initiatives that enhance the foundational systems of the country. Through the use of advanced technology, we have optimized pension distribution for millions of defence personnel, guaranteeing efficiency, transparency, and prompt service,” stated Tej Paul Bhatla, Senior Vice President and Business Head of Public Services at TCS.

Tata Consultancy Services Ltd.’s stock has risen by 1%

Tata Consultancy Services Ltd. (TCS) stock is up 1% and is currently trading at Rs. 4,345.95 per share, with the stock high traded today being Rs. 4,352.95.

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