SAP selects TCS in five-year deal to transform its IT landscape

Tata Consultancy Services (TCS) and SAP have entered into a five-year agreement to drive enterprise-wide cloud and generative AI transformation across SAP’s global operations. Announced today in Walldorf and Mumbai, the collaboration aims to accelerate SAP’s cloud adoption, streamline its complex IT landscape, strengthen AI-led capabilities, and enable faster and more efficient development cycles. The initiative is expected to bring down the total cost of ownership while strengthening alignment between SAP’s IT and business functions.

This partnership deepens the companies’ more than two-decade relationship, during which TCS has played a pivotal role in building and scaling SAP’s Enterprise Cloud Services (RISE with SAP). TCS has helped SAP transition from a traditional license-maintenance model to a pay-per-use cloud services framework that enhances scalability and agility. Over the next five years, TCS will focus on reshaping SAP’s IT business functions to enable rapid innovation and more responsive support for global business needs.

Dr. Benjamin Blau, Chief Process & Information Officer at SAP, said the partnership is rooted in “trust and excellence,” adding that TCS’s commitment to driving product innovation has strengthened SAP’s long-term transformation journey. “Together, we are simplifying our customer journeys and accelerating cloud adoption,” Dr. Blau said.

As part of the engagement, TCS will deliver end-to-end lifecycle services for enterprise IT transformation through a unified, AI-powered model. The collaboration will be anchored by four strategic Centers of Excellence (CoEs) focused on generative AI, business technology platform, business data cloud, and customer experience. These CoEs will drive innovation in embedding GenAI within SAP business processes, developing next-generation features through low-code and no-code capabilities, building uniform enterprise data architecture, and modernizing customer experience evaluation across the value chain. Collectively, these efforts aim to equip SAP’s customers, partners, and employees with the technology and processes required to unlock new avenues of growth.

V Rajanna, President of Technology, Software and Services at TCS, said the partnership has helped enterprises across the world navigate complex digital transformations. “We support the ‘SAP runs SAP’ philosophy, and as we enter the next phase, this collaboration will 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,” he said.

For over twenty years, TCS has served as SAP’s trusted transformation partner across the value chain. The alliance continues to help clients tap into SAP’s enterprise cloud, business AI, and advanced data analytics to strengthen competitiveness and accelerate innovation.