Tata Consultancy Services (TCS) and global enterprise software leader SAP have entered into a new five-year agreement aimed at speeding up SAP’s shift toward Cloud-first operations and advanced Business AI adoption. The deal strengthens a partnership that has already spanned more than two decades and played a crucial role in SAP’s evolution from a traditional licence-based model to a scalable, pay-per-use Cloud services framework.
Under this expanded collaboration, TCS will work closely with SAP to simplify its existing IT landscape, modernise application lifecycles, and enhance operational agility. The core objective is to bring greater speed, efficiency, and cost optimisation across SAP’s enterprise systems, while aligning its technology backbone more tightly with long-term business goals. Through this initiative, SAP expects to shorten development cycles, reduce total cost of ownership, and boost the responsiveness of its enterprise platforms.
As part of the agreement, TCS will support SAP with a unified, AI-driven model that covers the end-to-end lifecycle of enterprise applications. The engagement will centre around four specialised Centres of Excellence created specifically for this transformation journey: Generative AI, Business Technology Platform, Business Data Cloud, and Customer Experience. These hubs will help SAP experiment, innovate, and operationalise new solutions at scale.
The Generative AI CoE will inject AI-led capabilities directly into SAP’s business processes, opening up new possibilities for accelerated decision-making and intelligent automation. Meanwhile, the Business Technology Platform CoE will help SAP fast-track development using low-code and no-code tools. The Business Data Cloud CoE is designed to create a more consistent and productised data architecture across the organisation, helping SAP derive more value from enterprise data. And the Customer Experience CoE will work on modernising tools and strategies that shape interactions across the full customer lifecycle.
For TCS, this is another step forward in its longstanding role as SAP’s strategic transformation partner. Over the years, TCS has helped SAP streamline its Cloud adoption, enhance agility, and unlock deeper value from AI and analytics. With this new agreement, the companies aim to build the next phase of enterprise technology powered by scalable Cloud foundations and intelligent, AI-driven solutions.
