TCS bags $1bn deal from Jaguar Land Rover to build future-ready digital services

India's largest IT services company Tata Consultancy Services (TCS) and luxury carmaker Jaguar Land Rover (JLR) on Thursday announced a partnership to transform the latter’s digital estate and build a new, future-ready digital core. The partnership is valued at nearly $1 billion over the next five years.  

Notably, JLR is owned by Tata Motors, a subsidiary of Tata Sons, which is also the parent company of TCS. A press statement said, 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.  

As part of the new partnership, TCS will leverage its contextual knowledge, deep domain expertise, proprietary platforms, vast partner ecosystem and future-ready talent pool to help JLR enhance its digital capacity; transform, simplify, and manage its Digital estate; and build a new, future-ready digital core that will support its business transformation. 

Furthermore, TCS will deliver a broad range of services spanning application development & maintenance, enterprise infrastructure management, cloud migration, cybersecurity and data services. 

By leveraging new technologies to transform core IT operations and adopting new ways of working, TCS will enable a leaner, more agile and scalable operating model. 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 into the future, the statement added. 

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

"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,” said Anupam Singhal, Business Group Head - Manufacturing, TCS. 

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

In May, 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.