TCS inks 5-year deal with SAP to streamline IT ops, boost AI capabilities

Tata Consultancy Services (TCS) on Thursday said it has signed a five-year deal with SAP to support the European enterprise software major in streamlining its IT operations and enhancing AI-driven capabilities.

The partnership aims to deliver faster development cycles, lower total cost of ownership, and better alignment between IT and business goals, TCS said in a regulatory filing.

The agreement builds on a two-decade partnership under which TCS has established and scaled SAP's enterprise cloud services, helping shift its business model from license maintenance to pay-per-use cloud offerings.


Over the next five years, TCS will work to modernise SAP's IT operations, accelerating innovation and ensuring stronger alignment with business priorities.

TCS will support SAP in delivering end-to-end IT lifecycle services through an AI-led unified model as part of enterprise transformation initiatives. The partnership will be driven by four Centres of Excellence focused on Generative AI, business technology platform, business data cloud, and customer experience.

These CoEs will embed AI capabilities in SAP processes, enable rapid low-code development, build a uniform enterprise data architecture, and enhance customer experience strategies.

"We support the 'SAP runs SAP' philosophy...this collaboration shall leverage the transformative potential of AI and cloud to unlock new revenue streams, accelerate business growth, and deliver differentiated experiences for enterprises and their customers globally," V Rajanna, President, Technology, Software and Services at TCS, said.