TCS bags multi-year deal from British retail firm Asda

Tata Consultancy Services (TCS) announced on Wednesday that it will support British retail giant Asda in its digital transformation and implement a new information technology (IT) model. The financial details of the multi-year deal were not disclosed. 

According to a statement from TCS, the strategic partnership will utilize TCS' cloud, artificial intelligence, and security solutions to assist Asda, which was previously owned by US retail giant Walmart, in smoothly and securely delivering the divestiture on time. TCS will help Asda enhance customer experience and innovation capabilities. 

TCS also plans to build a new digital core by implementing multiple cloud-based platforms to streamline Asda's supply chain forecasting, buying and merchandising processes, human resources processes, warehouse management, and e-commerce processes, the statement said. 

Founded in Yorkshire in 1949, Asda Stores faced bankruptcy and merger threats in the latter half of the 20th century before being acquired by Walmart Inc. for £6.7 billion in 1999, which was seen as a corporate raid by the British media. In 2021, British-Indian billionaires Mohsin Issa and Zuber Issa acquired the company for £6.8 billion, with Walmart retaining "an equity investment" and a board seat. 

“We have a long-term vision to grow Asda and bring our great heritage in value to even more communities – and our technology will play a key role in achieving this vision,” Mohsin Issa, CEO of Asda, said.

“We chose to partner with TCS because of their experience in retail technology transformation and innovation. We look forward to working with them to accelerate our digital transformation journey and unlock the potential of our business,” he added. 

TCS also said it will utilize its machine-first delivery model to automate the retailer's IT operations, providing a seamless experience for employees and customers and improving operational resilience. 

It is worth noting that TCS has secured several deals in the UK this year. In February, the company signed a contract worth over £600 million ($723 million) with London-based Phoenix Group Holdings to digitally transform the insurance services provider's product offering. In June, TCS announced the expansion of its partnership with National Employment Savings Trust, UK’s largest workplace pension scheme in a £840 million (around $1.1 billion) deal over an initial tenure of 10 years, wherein it will digitally transform the firm’s administration services to deliver enhanced member experiences.