Tata Consultancy Services (TCS) expanded its ties with Scandinavian non-life insurance company Tryg with a new €550 million deal, according to an exchange filing on Tuesday.

As per the deal, the Indian IT bellwether will help the insurer simplify and standardise operations across its three major markets — Denmark, Sweden, and Norway — and drive technological transformation over a period of seven years.

As part of the digital transformation, TCS would streamline the insurer’s complex IT landscape, created by organic growth and acquisitions. It would also unify fragmented operating models across geographies and embed automation and artificial intelligence (AI) to enhance efficiency in every element of the IT operations value chain, the statement said.

In the past, TCS has developed a unique model to drive an industry-first business case for Tryg's Danish and Nordic customers while achieving their strategic business goals.

In the April-June quarter of the current fiscal, the IT services company had a total contract value (TCV) of $9.4 billion, marking a 13.2% year-on-year (YoY) increase in constant currency terms. The company had pointed out that ongoing macro challenges are impacting discretionary IT spends by clients.

TCS AI expansion

Last month, TCS formed a new unit for AI-based operations and named insider Amit Kapur as its chief.

The new AI and services transformation unit will house all of the company's existing capabilities in this segment to deepen its focus on AI domain solutions and accelerate innovation, the memo said.

TCS' formation of the new unit comes a month after the sector bellwether announced plans to cut 12,000 jobs, signalling that India's $283 billion outsourcing sector could see more layoffs as the use of AI deepens.

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