TCS inks ₹8,300-crore deal with JLR

India's largest software services firm, Tata Consultancy Services (TCS) on Monday said it has entered into a strategic partnership with the digital unit of JLR to help the automaker build a strategic technology architecture.

TCS has had a longstanding relationship with JLR Digital, spanning over a decade, helping the luxury automaker optimise as well as pursue its growth agenda. The new partnership, valued at ₹8,300 crore over the next five years, builds on this relationship, expanding and deepening it further, the Tata Group's IT company says in a stock exchange filing.

As a part of the new partnership, TCS will deliver a broad range of services spanning application development and 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 says it will enable a leaner 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 company says.

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

"We are pleased to be selected by JLR as their strategic partner to help manage and transform their digital estate and build a new, future-ready digital core that will support their Reimagine strategy and electrification plans. 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," says Anupam Singhal, business group head - manufacturing, TCS.

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

"Building world class partnerships and maximising the benefits of being part of the Tata Group is a key part of our Reimagine strategy. Consistent with this, we are pleased to expand our long-term relationship with TCS to accelerate our digital transformation," says Nigel Blenkinsop, executive director, enterprise performance and quality, JLR.

"Their breadth of capabilities and deep understanding of our business will further enhance our ability to transform and simplify our Digital estate at pace, ensuring we can deliver a modern luxury experience for our clients," Blenkinsop adds.

This comes weeks after the Tata group announced plans to invest over 4 billion pounds or ₹42,537 crore to set up a 40-gigawatt battery cell gigafactory in the United Kingdom. JLR and Tata Motors will be anchor customers and supplies will commence from 2026. The electric car battery factory will be one of the largest in Europe. It is also one of the largest-ever investments in the UK automotive sector. The new gigafactory, which is expected to create up to 4,000 new direct jobs, is set to provide almost half of the battery production needed by 2030 – turbocharging Britain's switch to zero-emissions vehicles, the U.K. government says.