TCS Partners with SAP in Five-Year Agreement to Accelerate Cloud and AI Modernisation

SAP and Tata Consultancy Services (TCS), a leading provider of IT services, have inked a five-year agreement to upgrade SAP's enterprise-wide cloud and generative AI operations. The deal's value was not revealed. TCS will assist SAP in simplifying its intricate IT environment, facilitating smooth IT operations, and enhancing AI-led capabilities as part of the agreement.

Faster development cycles, reduced total cost of ownership, and improved alignment between IT and business objectives are all benefits of the partnership. TCS will concentrate on restructuring SAP's IT business unit over the course of the following five years in order to boost innovation and enhance responsiveness to business requirements.

TCS Offerings to SAP

Through a unified, effective, and AI-powered model, TCS will assist SAP in providing essential services for the whole lifetime of IT applications in enterprise IT transformation. Four strategic centres of excellence (CoE) for generative AI, business IT platforms, business data clouds, and customer experience will serve as the engagement's pillars. The cooperation between TCS and SAP is based on excellence and trust, according to Benjamin Blau, chief process and information officer at SAP.

Blau further added that TCS and SAP have a long-standing connection because of TCS's consistent dedication and cooperation in advancing product advancements. This year's IT transactions have primarily concentrated on increasing efficiency and cutting costs as businesses try to control spending in a volatile macroeconomic climate. Using generative AI and agents, clients are investing a portion of the savings from traditional transactions in disruptive ventures.

US Court Ruled Against TCS

According to Tata Consultancy Services (TCS), the biggest provider of IT services in India, a U.S. court ruled against it in the case involving DXC Technology Company (now Computer Sciences Corporation) on November 21.

TCS was fined $194 million by a US District Court last year for allegedly stealing trade secrets. In a regulatory filing on November 22, TCS stated that it would like to inform you that the United States Court of Appeals for the Fifth Circuit rendered a negative decision in the aforementioned case on November 21, 2025 (evening US time) and upheld the District Court's damages ruling.

The business went on to say that the Court had vacated the previously granted injunction and instructed the United States District Court, Northern District of Texas, Dallas Division, to reevaluate the injunction order based on the Appeals Court's directive.

According to TCS's regulatory filing from June 14 of last year, the court found the corporation liable for $194.2 million, which includes prejudgement interest, exemplary damages, and compensatory damages. Computer Sciences Corporation, which subsequently merged with DXC Technology Company, brought the lawsuit.