TCS takes over from Deloitte on Transport for NSW project

08 June 2018 3 min. read

In a noteworthy overseas deal, Tata Consultancy Services (TCS) has secured a contract with Transport for NSW – an Australian public sector entity – for the provision of software services, displacing global professional services firm Deloitte in the process. The deal is worth just short of $77 million.

Having surpassed all other Indian consulting firms in terms of market capitalisation (and all other Indian firms for that matter), the $100 billion IT services and consulting firm TCS is now proving a thorn in the side of the largest global players in the consulting industry: it was recently announced that the firm has displaced Deloitte as a software partner for a regional Australian transport agency.

After experiencing increasingly frequent delays, Transport for NSW (New South Wales) made the decision in 2015 to incorporate enterprise resource planning (ERP) software to improve its efficiency of operations. The entire restructuring programme came to be known as Transport Equip, and extended across transport systems in the road, maritime, and rail domains.

The $172 million spent on the programme so far includes contracts with the world’s leading ERP provider SAP, alongside BIG Four firms EY and Deloitte, as well as software services firm Backoffice Associates. Of these firms, Deloitte was thus far responsible for the delivery of software support and maintenance, specifically to the Transport Equip Centre of Excellence.

TCS wins contract with Transport for NSW

TCS will now take over this role from Deloitte, in a contract worth $76.7 million. “After competitive tendering, Tata Consulting Services will replace Deloitte Touche Tohmatsu in the provision of operation and maintenance services of the total ecosystem, with up to 40 subsystems for Transport Equip," said Transport for NSW in a statement. 

In terms of specifics, the contract will initially run for three years starting early this year and continue to April of 2021. Thereafter, the possibility exists of extending the collaboration for two additional periods of two years each, depending on the satisfaction levels with the firm’s services.

TCS comes on board at a promising phase in the project’s development, with the total number of daily users for the new system at 27,500. Transport for NSW has also just added IT systems integrator Dimension Data to the mix as a primary software reseller, in a contract worth just over $46 million.

Having been named a market leader in Software Product Engineering by the Everest Group in March this year, and subsequently named a leader in digital marketing services by NelsonHall, TCS has begun to leverage its highly credible capabilities to win contracts across the world. The firm recently won a mammoth contract worth over $2 billion to handle the administration of US-based Transamerica’s insurance and annuities practice.