TCS to buy US retailer Best Buy’s India GCC, develop an AI-native centre | Company News

Tata Consultancy Services (TCS) said it will buy US consumer electronics retailer Best Buy’s global capability centre (GCC) in India for an undisclosed amount. The agreement will combine the centre’s retail and enterprise knowledge with TCS’s technology, engineering, artificial intelligence (AI) and global delivery capabilities to accelerate innovation and scale AI-powered solutions.

As part of the agreement, the Best Buy India entity will transition to TCS to ensure business continuity while embarking on its transformation into an AI-native centre under a multi-year agreement.

“Best Buy has built a strong technology organization with deep knowledge of its customers and business. By bringing that talent together with TCS’ retail expertise, AI, engineering and global execution capabilities, we will create an AI-native capability engine that aligns Best Buy’s priorities. This partnership will also create a repeatable value platform that can potentially benefit the broader retail industry,” Krishnan Ramanujam, president of TCS’ consumer business group, said.

Many GCCs in India have struggled to mature beyond a certain point for a host of reasons, which has led to stagnation and the eventual sale of the entity to a service provider. Service providers, on the other hand, have been focusing on the GCC business to shore up revenue.

Ahrey Smith, vice-president of technology strategy and transformation at Best Buy, said, “Our India team has played an important role in advancing Best Buy’s priorities, and we wanted a partner that understood both the business context and the value of this team. TCS brings that understanding, along with the technology and AI capabilities to build on the team’s strengths.”