Tata Consultancy Services (TCS) has won a five-year technology services mandate for Best Buy’s India global capability centre (GCC), strengthening its relationship with the US-based consumer electronics retailer and expanding its role across data, analytics and artificial intelligence, reported Times of India.
The deal, estimated at around Rs 2,000 crore, comes after emerged ahead of Accenture in the final stage of the selection process, according to the report. Wipro was also understood to have been part of the initial shortlist.
Best Buy is the largest consumer electronics specialty retailer in the United States. Its India operations are becoming increasingly important as the company invests in digital commerce and technologies such as AI.
Best Buy had floated a request for proposal (RFP) for a technology services engagement covering its India GCC operations.
TCS won the mandate on the back of competitive pricing, aggressive service-level agreements (SLAs) and productivity benefits, according to people familiar with the matter cited in the report.
The five-year deal covers Best Buy’s India GCC operations as well as a broader technology services engagement. The scope includes areas such as data, analytics and AI.
Best Buy’s India GCC, located in Bengaluru, has around 600 employees.
The estimated Rs 2,000-crore value covers the GCC operations and the broader technology services offering.
The companies themselves had not publicly disclosed the value of the contract. Emails sent to TCS, Accenture, Wipro and Best Buy seeking comments had not received a response at the time of the report.
The new mandate is expected to deepen TCS’s existing relationship with Best Buy.
TCS already works with the retailer on technology services and digital transformation. Phil Fersht, CEO of HFS Research, estimated the existing TCS relationship with Best Buy at $75 million-$100 million in annual revenue, while noting that there is no publicly disclosed contract value.
The latest deal would therefore give TCS a broader role in supporting Best Buy’s technology operations in India.
It also comes at a time when Best Buy is placing greater emphasis on AI and digital commerce, areas that are increasingly central to its technology strategy.
Best Buy established a 70,000-square-foot technology centre in Bengaluru in 2024 to accelerate its digital transformation.
The centre was designed as an innovation hub covering digital strategy, product management, design, engineering, infrastructure and operations.
The retailer had said it intended to make the India hub a key centre for innovation around mobile and AI platforms and planned to build and expand teams in those areas.
The India centre has since become more strategic as Best Buy increases its investments in AI and digital commerce.
With TCS now taking over the GCC operations under the new mandate, the Indian centre will form part of a wider technology services relationship between the two companies
The technology push comes as Best Buy continues to operate a large retail business in the US.
The company reported revenue of $41.7 billion in FY2026, up from $41.5 billion a year earlier.
Comparable sales increased 0.5% during the year.
Computing and mobile phones were among the categories that drove growth, while declines in home theatre and appliances partly offset the gains.
The company’s increasing focus on digital commerce and AI makes its technology capabilities an important part of its business strategy.
TCS and Accenture were the final contenders for the Best Buy India GCC mandate, with TCS ultimately winning the engagement.
The selection followed Best Buy’s RFP process, with competitive pricing, service-level commitments and productivity benefits emerging as key factors in TCS’s win, according to the report.
Wipro was also reportedly among the companies considered during the initial stages of the process.
The deal highlights the growing competition among Indian and global technology services companies for large GCC and technology outsourcing mandates.
For TCS, the Best Buy engagement also builds on an existing client relationship rather than representing a completely new account.
Best Buy’s Bengaluru technology centre was created with a broad mandate spanning technology, product development and digital transformation.
Its focus on AI, mobile platforms, engineering and digital commerce makes the centre more than a conventional back-office operation.
The new five-year engagement could give TCS a significant role in supporting these capabilities, with the mandate extending beyond GCC operations into data, analytics and AI services.
The estimated Rs 2,000-crore deal therefore represents a sizeable expansion of TCS’s work with Best Buy and comes as the retailer continues to build its technology capabilities in India.