Tata Consultancy Services (TCS) has been working to make the Department of Posts (DoP) or India Post, which has a network of over 1.5 lakh post offices, future-ready digital platform.
The IT services firm, under a multi-year contract, has deployed tech solutions to help India Post with efficient mail operations, finance and accounting, HR functions, and connects a network of more than 1.5 lakh post offices.
The tech solution claims to support requirements of over five lakh employees, services over 40,000 concurrent users, and processes over three million postal transactions a day.
Now, the DoP can offer smart postal services, enriched customer experiences, and innovative value-added services to the citizens of India, TCS Business Group Head (Public Services) Debashis Ghosh quoted as saying to PTI.
TCS had got an over Rs 1,100 crore deal in 2013 from DoP for helping India Post become a digital platform and enable it to offer more services to the customers in an effective manner.
Through the modernisation, India Post looks to drive new revenue and get access to citizen services in rural regions. Entrackr‘s queries seeking detail of the revival plan to India Post are still awaited.
Currently, the DoP has the most widely distributed postal network of 1,55,015 post offices and 57 delivery centers.
In the last three fiscals, India Post has witnessed revenue deficit rising over 150 percent. It has, in fact, become the biggest loss-making PSU. In FY19, its annual deficit touched over Rs 15,000 crore. This is largely due to the company’s high pay and allowance costs. Experts also think that one of the contributing factors is no balance between product-service and price charged by the postal body.
For FY20, It has projected revenue of Rs 19,203 crore. Looking at its massive workforces, the revenue-deficit gap is expected to grow further in the coming year.
At present, around 60 percent of its revenue comes from the National Savings Schemes and Saving Certificates.
The DoP plans to increase its revenue through online commerce.
After seeing growth in its e-commerce focused logistics business, in November last year, India Post had launched its e-commerce site to expand the parcel business network.
The DoP e-comm bet is yet to pay off.