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TCS wins ~US$1-billion contract from GoI!

News: TCS informed the stock exchanges that Ministry of of External affairs has chosen the company to implement second phase of Passport Seva Program. In the next phase of the programme, TCS will refresh existing facilities and systems and develop new solutions to enable the issuance of e-passports using technologies such as biometrics, artificial intelligence, advanced data analytics, chatbots, auto-response, natural language processing, and the cloud. According to media reports, TCS will be managing the project for nine and half years and can be extended for two more years.

Views: The deal amount is not given by the company but media reports suggest the deal could be in the ball park range of Rs.6000-8000 crore ( US$800-1066 mn). Assuming 80% the revenue is front loaded ( for 18-24 months of implementation) and rest 30% for maintenance over the remaining life of the project, it would add ~1.5-1.7% incremental revenue over two years.

Impact: Positive