TCS and Nielsen Market Research extend their contract in India

02 January 2018 Authored

Indian consulting giant Tata Consultancy Services (TCS) has signed an outsourcing contract valued at $2.25 billion (Rs. 14,400 crore) with US-based market research firm Nielsen Media Research. The new deal is an extension of the decade-long deal worth $1.2 billion (Rs. 7,600 crore) that the two firms signed in 2008.

Founded in 1996, Nielsen Media Research (NMR) is a market research corporation based out of New York. The firm lays emphasis on studying consumer behavior, primarily through understanding their media usage, spanning TV, print and radio. To this end, the firm conducts detailed consumer surveys in more than 100 countries across the world, including 47 in Europe.

The surveys are focused on determining buying trends and media habits, with the objective of developing creative insights that would best capitalise on the same. The principle behind the firm's operations is that each action performed by a consumer, whether making a purchase or surfing a website, produces a stream of data, which can be mapped and analysed for market insight.

In India, a rapidly expanding digital arena over the next few years will provide the firm with a sea of information to work with. NMR is already active in India, working in partnership with TCS since 2008 to monitor market trends in the country. Under the contract worth $1.2 billion, the consulting firm provides primarily IT services such as application development and maintenance.

TCS and Nielsen Market Research extend their contract in India

In addition, TCS also offers BPO client services, knowledge process outsourcing, management sciences, data analytics, and even assistance with financial planning. The contract, which was initially for $1.2 billion till 2020, was increased to $2.5 billion in 2013, and has now been extended by another 5 years to 2025 for a value of $2.25 billion.

Specifically, the contract expires on the 31st of December 2025, with the option of three one-year renewals for Nielsen if required.  The extension also coincides with an increasing willingness to spend on digital advertising in the Indian market, which creates a substantial market for the firm.

In a press statement, Nielsen said, “Nielsen has committed to purchase services from TCS from the Effective Date through the remaining term of the Agreement (the ‘Minimum Commitment’) in the amount of $2.25 billion, including a commitment to purchase at least $320 million in services per year from 2017 through 2020, $186 million in services per year from 2021 through 2024, and $139.5 million in services in 2025.”