On Friday, Tata Consultancy Services (TCS.NS) said it had agreed with insurance provider Transamerica to discontinue a $2 billion contract due to a difficult economic environment.
TCS and Transamerica collaborated on a 10-year contract to digitize over 10 million policies into a single platform.
TCS said it would take 30 months to transition life insurance, retirement, and investment products to a new servicing model.
“It’s more of a sentimental negative than a big impact on TCS’s financials,” said Motilal Oswal Financial Services head of retail research Siddhartha Khemka.
Indian IT businesses, who get most of their revenue from the US and Europe, have warned of a telecom and communication slowdown as clients cut expenditures and scale back projects.
This has little effect. Khemka agreed that it indicates a weak demand environment.
TCS stock is down 1.3% at 3,175.
