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Tata Consultancy Services Inks Extension Contract with SPARSH

TCS will oversee the maintenance of SPARSH's hardware and software systems and provide essential updates.

Tata Consultancy Services Ltd (TCS) on 26 November announced that they have extended their partnership with SPARSH, India’s pension system for defence personnel, by three years. 

India’s largest IT services company has secured a three-year extension to manage and enhance the pension services for over 30 lakh retired defence personnel under the government’s System for Pension Administration – Raksha (SPARSH) initiative.

SPARSH, a program launched by the Indian government, aims to centralize the pension distribution process for defence pensioners, eliminating bank service charges and saving approximately Rs 250 crore annually, as noted in a company filing.

Under the renewed contract, TCS will oversee the maintenance of SPARSH’s hardware and software systems and provide essential updates over the next three years.

TCS first rolled out pension processing on the SPARSH platform in October 2020, introducing an integrated, secure, and efficient pension disbursement system. This digital transformation reduced pension processing timelines from 12-18 months to just 14 days, with payments for first-time pensioners now completed in 5-7 days.

TCS has also been instrumental in implementing the One Rank One Pension (OROP) scheme, ensuring equal pensions for defence personnel of the same rank and service length, irrespective of their retirement date, the company highlighted in a press release on 26 November.

Tej Paul Bhatla, Senior Vice President and Business Head, Public Services-India at TCS, said, “The extension of our partnership with SPARSH highlights TCS’ capabilities in driving large-scale digital transformation projects that strengthen 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.”

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