New Transamerica partnership to impact 2,200 jobs

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CEDAR RAPIDS, Iowa (KCRG-TV9) -- Transamerica is now working with the company Tata Consultancy Services, or TCS, and it will impact 2,200 jobs across the U.S. including in Cedar Rapids.

In a press release Thursday, Transamerica says their agreement with TCS will impact Transamerica's insurance and annuity business lines. It went on to state it will "transform the administration of Transamerica to accelerate the enhancement of its digital capabilities and the modernization of its platforms to service its customers in all lines of business."

This transition will affect around 2,200 Transamerica employees who currently work in those business lines.

Transamerica says it means no job eliminations, but that TCS will offer positions to those employees. The press release stated those employees will be given the opportunity to remain in the same U.S. cities where they're currently based.

"We had the customer at the forefront of every decision that we made in this process and we selected TCS and another reason that we selected them really is because they understood the value that our employees bring to the table," said spokesman Kyle Frette.

In Cedar Rapids, that means 882 employees will be offered jobs by TCS. Transamerica will not retain any of those positions. TCS will have a location in the Cedar Rapids north campus. That's off Edgewood Road Northeast.

TCS will actually administer Transamerica's life insurance, annuity, supplemental health insurance and workplace voluntary benefits products. It means they'll be in charge of more than 10 million policies.

Transamerica says this is a big cost savings move, saying they expect to save $70 million initially, and it should grow to $100 million over time.