After JLR, TCS signs pact with UK retail major Asda for digital transformation

India's largest software services firm Tata Consultancy Services has entered into a multi-year partnership with embattled British retail giant Asda to support its digital transformation and implement a new-organisation-wide IT operating model, according to the regulatory filing by the company. The development comes months after Asda’s divestiture from Walmart. The deal amount, however, remains undisclosed. The development comes at a time when Asda is trying to revive itself in the highly competitive UK retail market. 

According to the company, the strategic partnership will leverage TCS’ cloud, AI, and security solutions to help Asda deliver the divestiture smoothly, on time and securely. TCS will enable ASDA to enhance its customer experience and innovation capabilities.

“We have a long-term vision to grow Asda and bring our great heritage in value to even more communities – and our technology will form a key part of delivering this vision. We have partnered with TCS because they bring experience in retail technology transformation and innovation. We look forward to working with them to accelerate our digital transformation journey and to unlock the potential of our business,” says Mohsin Issa, CEO, Asda.

TCS will build a new digital core by implementing multiple cloud-based ERP platforms to streamline Asda’s supply chain forecasting, buying, merchandising processes, HR processes, warehouse management, and e-commerce processes. Additionally, TCS will use its machine first delivery model to automate the retailer’s IT operations, providing a seamless experience for employees and customers, and improving operational resilience.

“We will leverage the power of data and AI, and deliver innovative, industry-leading retail technology solutions to transform their core retail operations, employee experience, supply chain and create opportunities for new business models,” says Abhijit Niyogi, business head, Retail-UK & Europe, TCS.

Notably, Asda, which was established in Yorkshire in 1949, has been making headlines over the years as the company battles with financial challenges. The company was initially acquired by Walmart in 1999 for $10.8 billion. However, in 2020 Walmart sold its stake in Asda to EG Group's (Euro Garages) Mohsin Issa and Zuber Issa and TDR Capital worth $6.8 billion in a bid to exit the UK retail market. Issa Brothers and TDR Capital currently have a 50% stake each in the company.

Meanwhile, the share price of Tata Consultancy Services closed 0.67% higher at ₹3,536. 

Last month, Tata Consultancy Services, which has been planning to bolster its presence in the AI space, entered into a strategic partnership with the digital unit of JLR to help the automaker build strategic technology architecture. TCS says the new partnership, valued at ₹8,300 crore over the next five years, builds on this relationship, expanding and deepening it further.