TCS shares in focus as Tata group firm bags $1 billion deal from Tata Motors arm JLR

Shares of Tata Consultancy Services (TCS) will be in focus on Thursday morning after the IT major said it has entered into a strategic partnership with the digital unit of Jaguar Land Rover (JLR) to transform, simplify, and help manage its digital estate, and build a strategic technology architecture that will support the latter’s reimagine strategy. JLR is the British arm of Tata Motors, another Tata group firm.

In a filing to BSE, TCS said: "The new partnership, valued at £800 million over the next five years, builds on this relationship, expanding and deepening it further. TCS will leverage its contextual knowledge, deep domain expertise, proprietary platforms, vast partner ecosystem and future-ready talent pool to help JLR enhance its digital capacity."

TCS shares have underperformed the market by rising 5 per cent year-to-date against 7.7 per cent jump in the BSE Sensex.

TCS said it will deliver a broad range of services to JLR, spanning application development & 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 will enable a leaner, more agile 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," it said.

TCS currently employs more than 23,000 people in the UK and Ireland, making it among the region’s biggest IT employers. TCS has operated in the UK for more than 45 years and worked with over 200 businesses.

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