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TCS secures 5-year strategic deal to steer SAP’s Cloud and Generative AI transformation

THEBUSINESSBYTES BUREAU

WALLDORF/MUMBAI, NOVEMBER 27, 2025

In a landmark move that underscores the accelerating shift toward AI-driven enterprise operations, Tata Consultancy Services (TCS) has been chosen by SAP for a five-year transformation mandate aimed at modernising the global software leader’s IT landscape and fast-tracking its Cloud and Generative AI (GenAI) adoption.

The collaboration will see TCS streamline SAP’s complex IT environment, strengthen its AI-led capabilities, and introduce a more agile operational framework. This initiative is expected to shorten development cycles, lower the total cost of ownership, and bring stronger alignment between SAP’s technology backbone and its strategic business objectives.

The deal further deepens the two organisations’ two-decade-long partnership. TCS has been instrumental in enabling and scaling RISE with SAP, helping SAP pivot from a traditional license-maintenance model to a pay-as-you-use Cloud services architecture that offers enhanced scalability and agility. Over the next five years, TCS will focus on reshaping SAP’s IT business function to accelerate innovation and improve responsiveness to evolving customer and market demands.

Highlighting the strength of the partnership, Dr. Benjamin Blau, Chief Process & Information Officer at SAP, said that the relationship is built on trust and excellence. He emphasised that TCS’s continuous commitment to co-innovation has played a crucial role in simplifying customer journeys and driving SAP’s accelerated cloud adoption.

As part of the mandate, TCS will take charge of delivering end-to-end lifecycle services for SAP’s enterprise IT applications through a unified, efficient and AI-powered operating model. The engagement will be anchored by four strategic Centers of Excellence (CoEs) dedicated to Generative AI, Business Technology Platform, Business Data Cloud and Customer Experience. These CoEs will work on embedding GenAI within SAP’s business processes, enabling faster development of next-generation features through low-code and no-code tools, creating a uniform enterprise-wide data architecture to help SAP productise data, and evolving modern strategies to enhance customer experience across the value chain. Together, they will support SAP in building future-ready solutions and processes that empower customers, partners and employees to unlock new avenues for growth.

V Rajanna, President, Technology, Software and Services at TCS, reiterated the significance of the long-standing alliance, noting that TCS and SAP have jointly helped global enterprises navigate complex digital transformation journeys for over twenty years. As the partnership enters its next phase, he said it will leverage the transformative potential of cloud and AI to unlock new revenue opportunities, accelerate business expansion, and deliver enhanced experiences for enterprises and their customers worldwide.

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