Tata Consultancy Services (TCS), India’s largest IT services company, has in-sourced about 1000 staff members from its client Lloyds Banking Group’s insurance division.
The staff will now be on the payrolls of TCS’ subsidiary Diligenta, which is a UK-based provider of business process services for the Life insurance and Pensions industry. It was established in 2005.
The transfer of staff is part of TCS’ new 15-years business agreement with Scottish Widows, Lloyds Banking Group’s life insurance and pensions business. The deal was announced on Wednesday.
Under the terms of the agreement Diligenta will support Scottish Widows to provide end to end policy administration services on its digitally-enabled platform for its 4 million heritage customers, TCS said in a regulatory filing.
TCS declined to comment on the staff transfer.
The transfer of staff move was criticized by UK trade union Unite.
The bank’s ‘sale’ of its committed Scottish Widows and Clerical Medical staff represents contempt for long-serving and skilled employees,” Rob MacGregor, a Unite national officer, said in a statement.
Shares of TCS closed down 1.33% at Rs. 2474.90 apiece on Tuesday on BSE.