TCS extends Sparsh deal to streamline pension for 3 mn defense personnel

India’s largest IT services firm, Tata Consultancy Services (TCS) on Tuesday, signed a three-year extension for its contract with System for Pension Administration Raksha (SPARSH) portal, India’s central web-based system for automating pension processes for defense personnel, to streamline pension distribution for over 3 million defense pensioners in India.

TCS will maintain the program's hardware and software while delivering key updates, the company said in a regulatory filing.

Since the rollout of SPARSH in October 2020, TCS has implemented an integrated pension disbursement solution, reducing processing times from 12-18 months to just 14 days. First-time pension payments are now processed within five to seven days.

TCS also played a crucial role in implementing the One Rank One Pension (OROP) scheme, which ensures equal pensions for defence personnel of the same rank and service length, reducing processing times from six to eight months to just two weeks and enabling disbursement to 1.8 million eligible pensioners in a record 15 days. TCS received a certificate of appreciation from the Controller General of Defence Accounts (CGDA) for this achievement.

Under the expanded contract, TCS will continue to enhance transparency and efficiency for pensioners and support application and development efforts. Additionally, TCS is discussing a digital solution for reverse payments in cases of overpayment.

Girish Ramachandran, President of Growth Markets and Public Services at TCS, said, “The SPARSH project exemplifies TCS’ commitment to leveraging technology for social good, streamlining critical pension services for those who have served our nation. By reducing processing times and implementing efficient digital solutions, we ensure timely, transparent pension disbursement while setting new benchmarks in public service delivery.”

The SPARSH system has digitised millions of records dating back to 1914 and onboarded over three million defence pensioners across the Armed Forces. TCS has integrated 50 organisations and 2,302 offices, disbursing over ₹2.82 lakh crore in pensions, benefiting both pensioners and the government.

Tej Paul Bhatla, SVP and Business Head of Public Services in 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 advanced technology, we have streamlined pension distribution for millions of defence personnel, ensuring efficiency, transparency, and timely service. This collaboration reflects our ongoing commitment to nation-building, and we are proud to contribute to initiatives that support the well-being of those who have served our country.”

Notably, by centralising the pension disbursement process and eliminating bank service charges, the system has saved the government approximately ₹250 crore annually. TCS has extensive experience in pension scheme digital transformation in the UK and other markets.

However, in January, the portal suffered from a massive significant security breach, in which thousands of defense personnel’s sensitive information was exposed, raising serious concerns about the privacy and security of those who have served in the nation’s defense forces.

Since the launch of the UK's digital auto-enrolment scheme in 2011, TCS has managed the National Employment Savings Trust (NEST), designing a user-friendly, self-service model for over 13 million workers saving for retirement. Recently, TCS signed a 15-year contract with the Department of Social Protection to transform Ireland’s pension system, benefiting over 800,000 workers.

TCS has also executed other mission-mode programs. Today, around 70% of Indians benefit from TCS services directly or indirectly every day. TCS has digitised India’s leading stock exchanges, powered RTGS and NEFT, transformed the passport issuance process, and engaged with various Central and State Government operations in the country.

In October, TCS signed a 15-year deal with Ireland’s Department of Social Protection (DSP) to manage the country's new Auto Enrolment Retirement Savings Scheme. This initiative is designed to enhance the digital management of retirement savings for approximately 800,000 employees in Ireland, providing effective enrolment processes, record-keeping and distribution of benefits.