SAP has signed a five-year outsourcing agreement with Tata Consultancy Services (TCS) to support its strategy to transform its internal IT infrastructure through enterprise-wide cloud and cloud technologies. generative artificial intelligence (GenAI).
The German business software giant has been working with TCS for 20 years, including a project to transform SAP's business model from cloud services based on pay-as-you-go service licenses.
The new contract will focus on SAP's internal IT operations, which serve more than 100,000 employees, and will see the companies jointly establish four centers of excellence (CoEs). They will focus on GenAI, low code and no code development, corporate data and customer experience.
“Together we are simplifying the journey for our customers and accelerating the adoption of cloud technologies,” they said Benjamin Blau, Director of Process and Information at SAP. “TCS has established a long-term relationship with SAP.”
The GenAI Center will embed GenAI capabilities and functionality into SAP business processes. The other platform, known as the Business Technology Platform CoE, will use low- and full-code tools to speed up development, while the Business Data Cloud CoE will focus on helping SAP monetize its data. The fourth center will be called Customer Experience.
V. Rajanna, President, Technology, Software and Services, TCS, said, “TCS and SAP have been a strategic partnership for over two decades… As we enter the next phase, this collaboration must leverage the transformative potential of artificial intelligence and the cloud.”
Also in Germany, TCS has expanded its collaboration with Aldi as part of the retailer's project to modernize retail operations using digital technologies.
As part of the deal, TCS will transform Aldi's IT infrastructure in Europe, the US and Australia, with a focus on artificial intelligence, cloud operations and cybersecurity.
Daniel Koch, global technical director at Aldisaid: “Together we will modernize infrastructure, introduce automation and deliver improved outcomes for our business and customers around the world. This partnership ensures Aldi is well positioned to respond flexibly to the growing demands of global retail.”
Abhijeet Niyogi, Vice President and Head of Retail Business, TCS, said that with advanced cloud technologies, automation and artificial intelligence capabilities, the technology landscape will be transformed.
TCS has been operating in Germany for about 35 years and currently has over 15,000 employees. According to IT offshoring expert Peter Schumacher, CEO of Value Leadership Group, TCS is the largest Indian IT services firm in Europe's largest economy.
“TCS’ results reflect strong demand from businesses in continental Europe to reduce costs and accelerate large-scale digital transformation initiatives,” Schumacher said. “But beyond customer-driven demand, TCS's performance also demonstrates its ability as an organization to respond appropriately to market situations and compete effectively.”
