Tata Consultancy Services (TCS) has signed a five-year agreement with SAP to overhaul SAP’s IT infrastructure via cloud adoption, generative AI, data modernisation and customer-experience systems. The partnership continues over two decades of collaboration.
Source: TCS Press Release (NSE Exchange Fillings) | Published on Nov 27, 2025
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As quoted in the press release of TCS (NSE Exchange Filings), the company is collaborating with SAP on a five-year agreement to modernise SAP's Global IT Operations. The collaboration focused on simplifying the IT Landscape, thereby lowering SAP's IT costs, as well as providing generative AI capabilities and Cloud Hosting Services. TCS has committed to establishing 4 Strategic Centres of Excellence (CoEs) to assist SAP in modernising its Data, Application and Customer Experience Workflows.
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Partnership spans five years and renews a 20-year long association between TCS and SAP.
Four CoEs to be established: Generative AI, Business Technology Platform, Business Data Cloud, Customer Experience.
Aim is to streamline SAP’s complex IT landscape, enable cloud adoption and integrate AI across operations.
Outcome expected: faster development cycles, lower overall IT costs, improved alignment between IT and business functions.
Deal will support SAP’s shift from traditional licensing to cloud and AI-enabled services.
The deal outlines that TCS will provide end-to-end IT application lifecycle services for SAP, supporting its enterprise IT transformation. The four Centres of Excellence will specialise as follows:
Centre of Excellence | Focus Area | Intended Outcome |
Generative AI CoE | Embed GenAI capabilities into SAP business processes | Introduce AI-based automation across operations |
Business Technology Platform CoE | Use low-code/no-code tools for next-gen development | Reduce development time and reliance on traditional coding |
Business Data Cloud CoE | Build uniform data architecture across enterprise data | Enable robust data management and analytics |
Customer Experience CoE | Revamp customer experience strategies across value chain | Improve experience for SAP customers, partners and employees |
SAP and TCS (Tata Consultancy Services) have been business associates for many years. Over the last 20 years, TCS has worked with SAP to help them transition from traditional licensing/support to cloud-based payment models, especially with SAP Business Network (RISE with SAP). This new agreement shows that SAP seeks to expand its use across all geographic regions and that TCS will support this expansion by improving business agility through the integration of artificial intelligence into SAP’s products and services.
As more and more businesses focus on AI and the Cloud, this relationship between SAP and TCS is likely to provide a solid foundation for how technology vendors develop their own partnerships and collaborations over time.
TCS is positioned to become an important partner in transforming large organisations' IT infrastructure through the integration of generational AIs and cloud computing. This is likely to create demand for large-scale enterprise-level IT transformation services as companies seek to modernise their legacy IT systems. Firms that currently provide cloud migration, data modernisation, and AI integration services may experience an increase in customer demand for their offerings.
In addition, TCS's move towards a unified IT-cloud-AI infrastructure could impact the way organisations approach managing total cost of ownership, shorter development cycles and improved data architecture. Therefore, it may help create new benchmarks for future IT transaction structures.
TCS share price stands at ₹ 3,136.60 per share on the BSE as of 27 November 2025 at 15:30 PM IST, down by 0.8%.
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