Analyst Report

A Buyer Case Study by IDC

This Buyer Case Study by IDC describes how TCS helped set up the administration services for NEST, the UK’s new low-cost national workplace pension scheme, in time for employers to start to automatically enroll workers from October 2012.

This Buyer Case Study by IDC describes how TCS helped set up the administration services for NEST, the UK’s new low-cost national workplace pension scheme, in time for employers to start to automatically enroll workers from October 2012.

It also describes how the vendor selection was made and highlights the role TCS played in making the program a success.

Excerpt from the report:
Key learnings include:

  • The selection of the supplier for the core administration services contract, which was won by Tata Consultancy Services (TCS), was successful in part because NEST paid close attention to a series of critical success factors, including having a proven track record in pension services, technology implementation capabilities, technology assets, risk acceptance/sharing, and the viability of prospective suppliers’ commercial models.
  • Given the technological requirements of the project, an important success driver was NEST’s decision not to take the existence and suitability of prospective suppliers’ enabling technology for granted. NEST made the development and testing of the proposed core application a compulsory part of the selection process, which ensured that the final shortlisted vendors had strong existing capabilities to build on.
  • Close collaboration and a good cultural fit between client and supplier were key success factors in the implementation phase of the contract. NEST entrenched the importance of collaboration by working closely with prospective suppliers on planning and risk management during the nine-month period of competitive dialogue before the contract was awarded.

A conservative approach to meeting strict deadlines is an extremely good idea when time is tight and failure is not acceptable. NEST officially had a deadline of October 2012 — the date that the UK’s largest employers will start to automatically enroll workers — to have a pensions scheme that was ready to accept any employer that chose to use it to meet their employer duties, but it made sure that it was actually up and running well over a year before this deadline.”

Read the complete report.

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