SAP Taps TCS to Overhaul Internal IT and Cloud Stack

India’s largest IT services firm, Tata Consultancy Services Ltd (TCS) has signed a five-year deal with software giant SAP to overhaul its internal IT systems and embed cloud and generative-AI capabilities across its operations.

Under the agreement, TCS will streamline SAP’s complex global IT landscape and handle the end-to-end lifecycle of its enterprise applications.

The partnership centers on four new “Centers of Excellence” (CoEs) devoted to generative AI, low-/no-code software development, unified data architecture, and customer-experience tools.

SAP’s Chief Process and Information Officer, Benjamin Blau, said the extended partnership rests on “trust and excellence,” and blends SAP’s long-standing IT backbone with TCS’s delivery muscle. 

TCS’s President for Technology, Software and Services, V. Rajanna, said the deal will “unlock new revenue streams, accelerate business growth, and deliver differentiated experiences” for enterprises worldwide.

The deal builds on a two-decade relationship during which TCS supported SAP’s shift from a traditional software licensing model to pay-per-use cloud services. 

The next phase of collaboration will center on retooling SAP’s IT function to respond more quickly to evolving business demands.