SAP has entered into a five-year outsourcing agreement with Tata Consultancy Services (TCS) to assist in its efforts to revamp its internal IT infrastructure with enterprise-wide cloud and generative artificial intelligence (GenAI).
Having collaborated with TCS for two decades, the German software company has already undertaken a project with TCS to shift its business model from license-maintenance-based to pay-per-use cloud services.
The new contract will primarily focus on SAP’s internal IT operations, supporting over 100,000 employees, and will involve the establishment of four centers of excellence (CoE) in partnership with TCS. These CoEs will concentrate on GenAI, low-code and no-code development, enterprise data, and customer experience.
“By working together, we are streamlining our customer journeys and speeding up cloud adoption,” stated Benjamin Blau, SAP’s chief process and information officer. “TCS has built a strong and enduring relationship with SAP over the years.”
The GenAI center will integrate GenAI capabilities into SAP’s business processes, while the Business Technology Platform CoE will leverage low-code and no-code tools for faster development. The Business Data Cloud CoE will assist SAP in monetizing its data, and a fourth center will focus on enhancing Customer Experience.
V Rajanna, president of technology, software, and services at TCS, remarked, “TCS and SAP have had a strategic partnership for more than 20 years… This collaboration will harness the transformative power of AI and cloud technologies.”
Meanwhile, in Germany, TCS has extended its partnership with Aldi to modernize retail operations through digital technologies. The collaboration will involve the transformation of Aldi’s IT infrastructure across Europe, the US, and Australia, with a strong emphasis on AI, cloud operations, and cybersecurity.
Daniel Koch, international technology officer at Aldi, expressed, “Together, we will modernize infrastructure, drive automation, and deliver superior outcomes for our business and global customers. This partnership ensures that Aldi remains agile in responding to the evolving demands of the retail industry.”
Abhijit Niyogi, vice-president and business unit head of retail at TCS, highlighted that through advanced cloud, automation, and AI capabilities, the technology landscape will undergo a significant transformation.
With a presence in Germany for over 35 years and a workforce of more than 15,000 employees, TCS has established itself as the largest Indian IT services firm in the country with the largest economy in Europe, according to offshoring IT expert Peter Schumacher, CEO of Value Leadership Group.
“TCS’s performance reflects the strong demand from businesses in continental Europe to drive cost savings and embark on large-scale, digitally-enabled transformation projects at an accelerated pace,” Schumacher noted. “Beyond customer-driven demand, TCS’s results also showcase its organizational agility in responding to market dynamics and effectively competing in the industry.”
