India-based IT services, consulting, and business solutions provider Tata Consultancy Services (TCS) has extended its contract with SPARSH for an additional three years.

SPARSH (System for Pension Administration – RakSHa) is a digital platform launched by the Government of India to modernise the pension disbursement process for army personnel.

The SPARSH system involved the digitisation of millions of records, dating back to 1914, and the onboarding of more than three million pensioners across the three defence branches.

It has onboarded 50 organisations and 2,302 offices, and disbursed a total of more than INR2.82 trillion ($33.4bn) in pensions, said the Indian IT firm.

Under the extended partnership, TCS will not only maintain the hardware and software of the programme for three years but also deliver key updates to the system. 

TCS growth markets and public services president Girish Ramachandran 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’re helping ensure timely, transparent pension disbursement while setting new benchmarks in public service delivery.”

TCS started processing pensions for India’s defence personnel on SPARSH in October 2020, implementing an integrated, secure, and efficient pension disbursement solution.

Building on its advanced digital technology, the IT firm significantly reduced pension processing timelines from 12 to 18 months to 14 days.

It has processed the first-time pension payments within five to seven days and has implemented the One Rank One Pension (OROP) scheme.

The OROP scheme ensures that defence personnel of the same rank and length of service receive the same pension, regardless of their retirement.

TCS said it helped reduce the processing time from six to eight months to just two weeks, enabling the disbursement of OROP to 1.8 million eligible pensioners within 15 days.

Under the extended partnership, TCS will continue to deliver transparency in services to the pensioners, supporting the application and development efforts.

Also, the IT firm is in discussion with the department to potentially develop a digital solution that would allow pensioners to make reverse payments in the event of overpayments.

TCS India public services SVP and business head Tej Paul Bhatla 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 cutting-edge 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 continue contributing to initiatives that support the well-being of those who have served our country.”