Tata Consultancy Services (TCS) announced a five-year strategic partnership with Porsche AG and an agreement to transition Best Buy’s Global Capability Center (GCC) in India to TCS, according to an exchange filed by the company on Thursday.
As part of the Porsche partnership, will establish a dedicated AI Mobility Centre of Excellence for the automaker and acquire 100% of MHP, Porsche’s Germany-based management and IT consulting subsidiary.
“We are pleased with the broad-based growth in all our international markets and most industry segments. This quarter we announced two unique deals with Porsche and Best Buy which represent a new category of transformation partnerships. Together with our clients, we are building repeatable value platforms that will industrialize AI at scale,” said , TCS CEO and Managing Director.
TCS to acquire Porsche’s MHP
said the transfer of MHP to TCS would allow it to focus on its core business while gaining TCS as a strategic partner.
“By combining Porsche’s automotive expertise with TCS’ digital technology and AI capabilities, we will further strengthen our innovative power, increase efficiency, and boost our competitiveness in an increasingly data and software-driven world of mobility,” Porsche CEO Michael Leiters said.
Best Buy to transition India GCC to TCS
TCS also announced an agreement to transition Best Buy’s Global Capability Center in India to the IT services company.
The company said the partnership will combine Best Buy’s retail and enterprise knowledge with TCS’ technology, engineering, AI and global delivery capabilities. The GCC will be transformed into an AI Capability Center (AICC) using TCS’ Global Value & Innovation Centres framework.
Best Buy’s Vice President of Technology Strategy and Transformation, Ahrey Smith, said the company wanted a partner that understood both the business context and the value of its India team.
“TCS brings that understanding, along with the technology and AI capabilities to build on the team’s strengths and meaningful opportunities for employees to continue learning and growing in their careers,” Smith said in a statement.
TCS AI revenue crosses $3 billion
The strategic deals come as TCS highlighted continued momentum in AI-related business.
“Demand for delivering business outcomes with AI-native solutions, AI-led transformation of enterprise systems and autonomous GBS, continues to accelerate,” said Aarthi Subramanian, executive director and president and chief operating officer at TCS. She also highlighted that the annualised AI revenue at the company had exceeded $3 billion.
TCS releases Q2 revenue
TCS reported ₹73,188 crore in Q2 revenue, up 1.3% quarter-on-quarter and 11.2% year-on-year in rupee terms. Its annualised AI revenue stood at $3.1 billion, crossing 10% of revenue. The company also said that the total contract value for the quarter was $9.6 billion.