TCS and SAP sign a five-year agreement to improve AI capabilities and optimize IT operations.

Tata Consultancy Services (TCS) announced on Thursday that it has entered into a five-year agreement with SAP to help the European software giant streamline its IT landscape and boost its AI-driven capabilities. According to a regulatory filing by TCS, the collaboration is expected to support quicker development cycles, reduce overall ownership costs, and ensure better synchronization between IT functions and business objectives.

This new agreement extends the long-standing, 20-year partnership between the two companies. Over the years, TCS has played a key role in building and scaling SAP’s enterprise cloud services, aiding SAP’s shift from traditional license-based models to pay-as-you-go cloud solutions.

During the next five years, TCS will focus on upgrading SAP’s IT operations, accelerating innovation, and ensuring that technology initiatives remain closely aligned with business needs. As part of SAP’s enterprise transformation journey, TCS will deliver end-to-end IT lifecycle services through an AI-first, unified operating model.

The partnership will be anchored by four specialised Centres of Excellence (CoEs) covering Generative AI, the Business Technology Platform, the Business Data Cloud, and Customer Experience. These centres will focus on integrating AI into SAP workflows, enabling faster low-code development, establishing a unified enterprise data framework, and improving customer experience strategies.

“We fully support SAP’s ‘SAP runs SAP’ approach. This renewed collaboration will tap into the power of AI and cloud technologies to open new revenue opportunities, drive business expansion, and deliver distinctive experiences to enterprises and their customers worldwide,” said V Rajanna, President – Technology, Software and Services at TCS.