In a deal with Prudential Financial, Tata Consultancy Services will take on assets and employees from Letterkenny-based Pramerica.
More than 1,500 Pramerica employees based in Letterkenny, Co Donegal, will be transferred to Tata Consultancy Services (TCS) following a new deal. TCS confirmed today (12 November) that an agreement had been reached with Pramerica’s parent company, Prudential Financial, to sell the Irish subsidiary that provides software and business support.
Indian firm TCS said that once Pramerica staff and assets have been transferred, it will continue to provide Prudential Financial with business, digital and technology services, while also expanding its offerings to other customers in Ireland, the UK, Europe and the US.
“Ireland is uniquely positioned to play a leading role in the digital economy,” said K Krithivasan, president of banking, financial services and insurance at TCS.
“This key investment deepens our relationship with Prudential Financial and gives us a new delivery capability in Ireland with specialised expertise that significantly strengthens our ability to meet the growth and transformation needs of our customers globally.
“We warmly welcome Pramerica’s employees into the TCS family. We are confident they will avail the immense career growth opportunities that TCS offers, and fully realise their potential.”
Stacey Goodman, chief information officer of Prudential Financial, said the company was “incredibly proud of the organisation our colleagues in Letterkenny have built and evolved over the past two decades and excited for Pramerica’s next chapter together with TCS”.
Prudential will retain the Pramerica Ireland entity, which will continue to operate from Letterkenny and will focus on providing regional business services under Prudential Global Investment Management.
‘Another important chapter’
IDA Ireland CEO Martin Shanahan also welcomed the deal, noting that when Pramerica began operations in Letterkenny 20 years ago, it had just eight employees.
“In the last two decades, Pramerica has successfully evolved and adapted many times over to become a substantial and significant employer in the north-west region,” he said. “This partnership with TCS is another important chapter in this process. I wish TCS and Prudential every success with this latest evolution and assure them of IDA Ireland’s continued support.”
TCS’s market value in software services is estimated to be around $130bn, making it Asia’s largest exporter in this field. It employs more than 450,000 people globally with approximately $22bn in revenue generated annually through software services.
According to Bloomberg, the deal to acquire Pramerica’s assets and employees will help Prudential Financial cut costs, partly as a result of the economic impact of Covid-19. A source familiar with the deal told the news outlet that no cash will be exchanged as part of the deal, which awaits regulatory approval.