Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), a global leader in IT services, consulting, and business solutions, has signed a three-year extension of its contract for SPARSH (System for Pension Administration - Raksha), a government of India initiative to streamline pension distribution for over 30 lakh defence pensioners. TCS will not only maintain the hardware and software of the programme for three years but also deliver key updates to the system.
TCS started the rollout of pension processing on SPARSH in October 2020, implementing an integrated, secure, and efficient pension disbursement solution for India's defence personnel. The digital transformation has resulted in significantly reduced pension processing timelines from 12 to 18 months to just 14 days. Additionally, first-time pension payments are now processed within five to seven days. A key achievement for TCS has been its role in implementing the One Rank One Pension (OROP) scheme, which ensures that defence personnel of the same rank and length of service receive the same pension, regardless of when they retire. TCS has enabled the processing time to reduce from six to eight months to just two weeks, allowing the disbursement of OROP to 1.8 million eligible pensioners in a record time of 15 days. Recently, The Controller General of Defence Accounts (CGDA) presented TCS with a certificate of appreciation for this accomplishment. As part of the expanded deal, TCS will continue to deliver transparency and efficiency to the pensioners, continuing to support the application and development efforts. Moreover, TCS is also in discussion with the department to potentially develop a digital solution that would allow pensioners to make reverse payments in the event of overpayments.
Girish Ramachandran, President -Growth Markets and Public Services, TCS, said, "The SPARSH project exemplifies TCS' commitment to leveraging technology for social good, streamlining critical pension services for those who have served our nation. By reducing processing times and implementing efficient digital solutions, we're helping ensure timely, transparent pension disbursement while setting new benchmarks in public service delivery."
The SPARSH system has been a large-scale effort involving the digitization of millions of records, dating back to 1914, and onboarding of over 30 lakh defence pensioners across the three branches of the Armed Forces. TCS has onboarded 50 organizations, 2,302 offices, and disbursed a total amount of over Rs 2,82,067 crore in pensions, benefiting both pensioners and the government.
Tej Paul Bhatla, SVP and Business Head, Public Services - India, TCS, said, "The extension of our partnership with SPARSH highlights TCS' capabilities in driving large-scale digital transformation projects that strengthens the nation's core systems. By leveraging cutting-edge technology, we have streamlined pension distribution for millions of defence personnel, ensuring efficiency, transparency, and timely service. This collaboration reflects our ongoing commitment to nation-building, and we are proud to continue contributing to initiatives that support the well-being of those who have served our country."
By centralizing the pension disbursement process and eliminating bank service charges, the system has saved the government approximately Rs 250 crore annually. TCS has extensive experience with digital transformation of pension schemes in the UK and other markets. Since the launch of the UK's digital autoenrolment scheme in 2011, TCS has managed the National Employment Savings Trust (NEST). It designed a digital framework for NEST, implementing a user-friendly, self-service model that supports over 13 million workers saving for retirement. Recently, TCS signed a 15-year contract with the Department of Social Protection to transform Ireland's pension system, benefitting over 8,00,000 lakh workers.
TCS has also been instrumental in India's technological revolution, executing several mission-mode programmes. Today, around 7 out of 10 Indians benefit from TCS services, directly or indirectly, every day. TCS has digitized India's leading stock exchanges, powered RTGS and NEFT, transformed the passport issuance process, and re-imagined several other Central and State Government businesses, redefining the nation's digital landscape.
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