In a significant expansion of their long-standing alliance, German software giant SAP has selected Tata Consultancy Services (TCS) for a five-year engagement aimed at modernizing and simplifying its global IT landscape. The initiative will focus on accelerated cloud adoption, deeper integration of business AI, and an operational redesign that aligns IT functions more closely with SAP’s evolving business priorities.
The transformation program includes the creation of four strategic Centers of Excellence (CoEs), dedicated to Generative AI, Customer Experience, Cloud and Business Technology Platform (BTP), and Business Data Cloud. These CoEs are designed to drive innovation, standardize architectures, and scale next-generation capabilities across SAP’s internal operations.
The partnership builds on more than 20 years of collaboration, during which TCS has contributed to SAP’s shift from traditional license-based models to the RISE with SAP cloud services framework. TCS has played a pivotal role in scaling SAP’s Enterprise Cloud Services and accelerating its “SAP runs SAP” vision—where SAP uses its own technologies to demonstrate best-practice transformation.
Under the new agreement, TCS will support SAP in streamlining its complex IT landscape, enhancing the stability and efficiency of IT operations, and embedding AI-led capabilities across business functions. The goal is to shorten development cycles, lower total cost of ownership, and create a more agile operating model that can rapidly respond to shifting business demands.
“TCS and SAP partnership is built on trust and excellence. TCS’s unwavering commitment and collaboration to drive innovations across products has forged a long-lasting relationship with SAP. Together, we are simplifying our customer journeys and accelerating cloud adoption,” said Dr. Benjamin Blau, Chief Process & Information Officer, SAP.
The four newly established CoEs will anchor much of this transformation:
- Generative AI CoE: Embeds GenAI features into core business processes and accelerates AI-first workflows.
- Business Technology Platform CoE: Enables faster delivery of new features using low-code/no-code approaches.
- Business Data Cloud CoE: Builds a uniform data architecture to help SAP productize enterprise data and unlock analytical value.
- Customer Experience CoE: Develops modern strategies to assess and enhance customer experiences across SAP’s value chain.
TCS leaders see the expanded mandate as an opportunity to help SAP set new benchmarks in enterprise operations.
“TCS and SAP have enjoyed a strategic partnership for more than two decades, enabling enterprises to navigate complex digital transformation journeys. As we enter the next phase, this collaboration shall 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,” said V Rajanna, President, Technology, Software and Services, TCS.
With SAP intensifying its focus on enterprise AI, cloud-native architectures, and data-driven operations, the expanded TCS engagement is expected to support SAP’s internal transformation while also strengthening the technologies and services delivered to its global ecosystem of customers and partners.
