TCS Enters In 800 Million Pounds Deal With Tata Motors-Backed JLR For Future-Ready Digital Services

Two leading Tata Group-backed firms have entered into a strategic partnership. Flagship and largest IT firm in India, Tata Consultancy Services (TCS) has bagged an 800 million pound deal from Tata Motors-backed luxury car brand, Jaguar Land Rover (JLR). Through this tie-up, TCS will transform, simplify, and help manage JLR its Digital estate, and build a new future-ready, strategic technology architecture that will support the latter's Reimagine strategy.

The new partnership, valued at £800 million over the next five years, builds on this relationship, expanding and deepening it further.

As part of the new deal, TCS will deliver a broad range of services spanning application development & maintenance, enterprise infrastructure management, cloud migration, cybersecurity and data services. Also, through synergies and economies of scale with suppliers, this partnership will deliver substantial savings for JLR over the next five years, unlocking free cash flow to reinvest in the future.

Anupam Singhal, Business Group Head - Manufacturing, TCS said, "This is a truly bi-modal partnership where the efficiencies from leaner operations will help fund the new digital core, while our contextual knowledge and expertise will de-risk and accelerate that transformation."

While Nigel Blenkinsop, Executive Director, Enterprise Performance & Quality, JLR said, "Building world-class partnerships and maximising the benefits of being part of the Tata Group is a key part of our Reimagine strategy. Consistent with this, we are pleased to expand our long-term relationship with TCS to accelerate our digital transformation. Their breadth of capabilities and deep understanding of our business will further enhance our ability to transform and simplify our Digital estate at pace, ensuring we can deliver a modern luxury experience for our clients."

Outside of the new contract, TCS is partnering with JLR to help accelerate its vision of a modern luxury client experience tailored to different markets globally, it said.

Also, notably, TCS has had a longstanding relationship with JLR Digital, spanning over a decade, helping the luxury automaker optimise as well as pursue its growth and innovation agenda.

In the United Kingdom, TCS has operated for more than 45 years and works with over 200 of the nation's best-known and most-loved businesses. TCS is the leading supplier of software and IT services to the UK market, by revenue. Currently, the tech giant employs more than 23,000 people in the UK and Ireland, making it among the region's biggest IT employers.

TCS has been ranked the number one IT service provider for customer satisfaction in the UK in an independent survey of CIOs from the largest IT spending organizations in the country.

On Thursday, at the time of writing, TCS shares traded at Rs 3,436.40 apiece marginally up by 0.2% compared to the previous closing of Rs 3,429.85 apiece on BSE. The tech giant's share ranged from Rs 3,448 and Rs 3,423 apiece on the day. Its market cap was over Rs 12.56 lakh crore.

Similarly, Tata Motors shares traded at Rs 612.40 apiece on BSE, up by 0.4% compared to the previous day's print of Rs 610.25 apiece. This auto stock ranged from Rs 613 to Rs 609.05 respectively so far in the day. Its market is over Rs 2.03 lakh crore.