CEDAR RAPIDS — Transamerica will move almost 900 of its Cedar Rapids employees to a different business.
The insurance and investment company announced Thursday that it will outsource administration of its insurance and annuities business. Tata Consultancy Services, an information technology and consulting company based in Mumbai, India, will take over the administration work for more than 10 million policies, the companies said in a news release.
Transamerica’s contract with TCS affects 2,200 employees, including 882 in Cedar Rapids. TCS will make all of those employees a job offer in the coming weeks, Transamerica spokesman Kyle Frette said.
“It is an offer. At that point, the employees can choose to accept or decline the offer, but it is an offer,” Frette said.
Employees will be made offers with “comparable pay” and TCS benefits, TCS head of HR Workforce Effectiveness Balaji Ganapathy said in an email.
Frette said he could not comment on whether the pay and benefits offered to employees will be the same as their current positions. A spokesman for TCS could not be reached for comment Thursday or Friday.
The 882 employees in Cedar Rapids would remain based at Transamerica’s campus in northeast Cedar Rapids, at the corner of Edgewood Road and 42nd St. NE. The transfer of employees is expected to be complete between April and June of this year. At that point, Transamerica and its parent company, AEGON, will have about 2,198 employees in the city, Frette said.
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Transamerica has previously said it plans to sell its Edgewood office space by the end of 2018. Frette said the company still is examining possibilities.
“We are holistically evaluating the north campus overall and our presence and our footprint in Cedar Rapids,” Frette said. He added that “Transamerica is prepared to make a significant investment in Cedar Rapids,” but could not provide specifics.
TCS also plans to make Cedar Rapids its “new North American insurance hub ... as part of a its plan to make a significant investment in the region,” according to a news release. Ganapathy said TCS “plans to hire locally in Iowa, set up relationships with educational institutions, and help employees with professional development to gain digital skills and fluency.”
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