TCS & SAP extend deal to drive cloud & AI transformation
Tata Consultancy Services has signed a new five-year agreement with SAP to support the global software provider's shift towards Cloud and Generative AI technologies.
The renewed arrangement extends a partnership between the companies that began over two decades ago and sets objectives to enhance SAP's IT landscape, streamline business operations, and integrate advanced AI-led capabilities.
Cloud transformation
The agreement focuses on helping SAP progress its "SAP runs SAP" strategy. Under the deal, TCS will simplify SAP's underlying operations, support seamless IT performance, and bring technology and business objectives into greater alignment. The collaboration aims to enable quicker development cycles, reduce overall operational costs, and allow SAP to respond more efficiently to customer demands.
The announcement signals SAP's intent to move more decisively towards cloud adoption and leverage AI to drive both efficiency and new business models. TCS will concentrate on reshaping SAP's IT functions in the coming years, with the stated aim to increase innovation and enhance business agility.
Centres of Excellence
To deliver the project's goals, both organisations plan to set up four strategic Centres of Excellence. The first centre will focus on Generative AI, embedding such capabilities within SAP's processes for automation and new use cases. Another will concentrate on the Business Technology Platform, accelerating the development and deployment of features using low-code and no-code tools.
A further centre dedicated to Business Data Cloud will work on developing a standardised data architecture, supporting SAP's ambitions to productise and monetise enterprise data assets. The Customer Experience centre will advance methods to improve engagement and service throughout SAP's value chain.
Long-standing partnership
TCS and SAP have a history of working together on enterprise cloud initiatives. In recent years, TCS has been involved in the adoption and scaling of SAP's cloud-based and usage-driven models, moving away from more traditional licence and maintenance approaches.
TCS's wider remit now includes providing support for crucial IT application lifecycles, transitioning SAP's suite towards a model described as unified, efficient, and powered by artificial intelligence. Through the four dedicated centres, SAP expects to strengthen its capacity to provide data-driven and adaptive solutions for customers and partners.
Market impact
The alliance reflects the pressure on enterprise technology companies to streamline operations and improve their digital and cloud strategies. SAP seeks to increase speed and innovation internally, with a view to passing those benefits to its own customers.
"TCS and SAP partnership is built on trust and excellence. TCS's unwavering commitment and collaboration to drive innovations across products has forged a long-lasting relationship with SAP. Together, we are simplifying our customer journeys and accelerating cloud adoption," said Dr. Benjamin Blau, Chief Process & Information Officer, SAP.
"TCS and SAP have been a strategic partnership for more than two-decades, enabling enterprises to navigate complex digital transformation journeys. We support the "SAP runs SAP" philosophy and as we enter the next phase, this collaboration shall leverage transformative potential of AI and cloud to unlock new revenue streams, accelerate business growth, and deliver differentiated experiences for enterprise and their customers globally," said V Rajanna, President, Technology, Software and Services, TCS.
