Tata Consultancy Services (TCS), a global leader in IT services, consulting, and business solutions, has extended its partnership with the Indian government’s pension system for defence personnel, SPARSH (System for Pension Administration – Raksha), for an additional three years. This agreement marks the continuation of TCS’s efforts to streamline pension disbursement services for over 30 lakh defence pensioners, ensuring transparency, efficiency, and timely delivery of benefits.
A Transformational Digital Initiative
The SPARSH program, which TCS first launched in October 2020, is a part of the Indian government’s push for digital transformation in its pension systems. The initiative aimed to digitize the pension process, centralize disbursements, and reduce inefficiencies. One of the most significant achievements of this transformation has been the drastic reduction in processing timelines. What once took 12 to 18 months for pension processing has now been reduced to just 14 days, with first-time pension payments now being processed within 5 to 7 days.
A key feature of the program has been the implementation of the One Rank One Pension (OROP) scheme. Under OROP, defence personnel of the same rank and length of service receive the same pension, regardless of their retirement date. With TCS’s involvement, the disbursement of OROP pensions to 1.8 million eligible pensioners was completed in an unprecedented 15-day window, a process that previously took 6 to 8 months. This efficiency earned TCS a certificate of appreciation from the Controller General of Defence Accounts (CGDA), acknowledging their role in improving the system.
Saving Costs and Enhancing Service Delivery
The integration of SPARSH has not only sped up pension disbursements but also saved the government significant amounts in costs. By centralizing the pension distribution process and eliminating bank service charges, the system has resulted in annual savings of approximately Rs 250 crore. These efficiencies have had a meaningful impact, both for the government and for pensioners, who benefit from quicker and more reliable payments.
“The SPARSH project exemplifies TCS’ commitment to leveraging technology for social good, streamlining critical pension services for those who have served our nation,” said Girish Ramachandran, President – Growth Markets and Public Services at TCS. “By reducing processing times and implementing efficient digital solutions, we’re helping ensure timely, transparent pension disbursement while setting new benchmarks in public service delivery.”
The partnership is also expected to continue to evolve, with discussions already underway to develop a digital solution that would enable pensioners to make reverse payments in cases of overpayment. This move would further improve the transparency and efficiency of the system.
TCS’s Role in Nation-Building
TCS has played a pivotal role in the digitization of public services, and its work with SPARSH is just one example of its broader contribution to India’s digital transformation. The company has been involved in various large-scale projects, such as the digitalization of India’s stock exchanges, the re-imagining of the passport issuance process, and the development of secure payment systems like RTGS and NEFT.
In addition to its domestic successes, TCS’s expertise in pension schemes has also been applied internationally. For instance, the company has managed the UK’s National Employment Savings Trust (NEST) since 2011, a digital auto-enrollment scheme that supports over 13 million workers. TCS is also working with the Department of Social Protection in Ireland to transform its pension system, benefiting over 800,000 workers.
Tej Paul Bhatla, Senior Vice President and Business Head, Public Services – India at TCS, commented, “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 cutting-edge technology, we have streamlined pension distribution for millions of defence personnel, ensuring efficiency, transparency, and timely service.”
Looking Ahead
With the three-year extension, TCS will continue its work to maintain the SPARSH system’s hardware and software, implement key updates, and ensure the smooth operation of pension services for India’s defence community. This partnership highlights TCS’s ongoing commitment to nation-building and underscores its role as a technology partner in the government’s mission to improve public services through digital innovation.