If the 18-year contract was extended, TCS stated in a statement that the contract, to assist Nest in modernising its administrative services, would be worth 1.5 billion pounds.

The largest provider of IT services in India, Tata Consultancy Services, announced on Wednesday that British pension fund Nest and the company had agreed to a new 10-year deal for 840 million pounds ($1.1 billion).

In case of the extension of this deal, the contract to assist Nest in modernising its administrative services would be worth 1.5 billion pounds, according to a statement from TCS.

The agreement being made at a time when clients in the United States and Europe, where Indian IT service providers’ primary markets are, are cutting spending because of recessionary fears.

Since 2011, TCS and Nest have been collaborating.

A $2 billion deal between TCS and insurance company Transamerica was voluntarily cancelled last week. Among the reasons given were difficult macroeconomic conditions.

Investors are waiting for an updated assessment from Indian IT firms, who will report their quarterly results next month after warning about an unstable demand environment in April.

Companies are reducing hiring in response to the slowdown and completing projects with their current workforce, an unusual backtracking that may have an impact on the economy of the nation.

TCS stock has increased 2.1% so far this year, trailing the nearly 4% growth of the larger Nifty 50 index.

Under the Pensions Act of 2008, the British government established Nest to streamline the auto enrolment process for employees. Similar to the Employees’ Provident Fund in India, it is a workplace pension plan, which means that the majority of participants join through their employment.