TCS and SAP Deepen Alliance to Accelerate Enterprise GenAI and Cloud Adoption

Tata Consultancy Services (TCS) and SAP have expanded their long-standing partnership to accelerate enterprise-wide Generative Artificial Intelligence (GenAI) and cloud adoption for their global customer base. The enhanced collaboration, announced on April 30, aims to leverage GenAI’s power to drive significant business transformation and streamline cloud migration strategies.

V Rajanna, President, Technology, Software and Services, TCS, commented on the significance of the expanded partnership. “Over the past two decades, TCS and SAP have consistently delivered industry-leading solutions, empowering global enterprises on their digital transformation journeys,” he said. “As we embark on the next phase, we remain committed to creating sustainable value and fostering growth for our customers. Together, we will continue to transform end-user experiences and drive innovation across the enterprise landscape.”

Building on two decades of partnership, this deepened alliance is specifically designed to simplify and expedite the process for customers transitioning from on-premises SAP environments to the cloud, particularly through SAP’s RISE with SAP offering. The goal is to establish a more integrated ecosystem that enhances service delivery, improves end-user experiences, and boosts overall customer success through advanced cloud and AI capabilities.

Vikram Karakoti, Global Head, Enterprise Solutions, TCS, emphasized the strategic depth of the partnership: “TCS looks forward to building on its twenty-year partnership with SAP to launch an accelerated path to RISE with SAP adoption and E2E automation with GenAI. TCS enjoys a 360-degree relationship with SAP, and together, we provide our clients with seamless and flexible digital cloud adoption, reinforcing operational resilience and efficiency. The new endeavor combines our agile, scalable methodologies with cutting-edge GenAI innovations to help global enterprises adapt, grow, and unlock new opportunities through technology.”

As part of this initiative, TCS plans to form an Innovation Council, utilizing its Agile Innovation Cloud (AIC) framework to spearhead advancements in AI democratization, GenAI, and automation. The TCS PacePort innovation network, spanning 12 major cities globally, will be a hub for collaborative ideation and solution development with SAP customers.

Highlighting the practical benefits for customers, Thomas Saueressig, Member of the Executive Board of SAP, Customer Services & Delivery, stated: “Our collaboration with TCS continues to drive meaningful impact for customers by bringing together leading cloud solutions and proven delivery expertise. Together, we are helping organizations simplify their transformation journeys, accelerate cloud adoption, and harness the power of AI and data.”

What This Means for SAPinsiders

This partnership reflects the significant growth in the enterprise AI market. Reports indicate that the enterprise AI market could exceed $175 billion by 2032. SAP is strategically collaborating with a range of AI leaders, including hyperscalers like Google Cloud, Microsoft, and AWS, as well as AI technology providers like NVIDIA and Mistral AI. This multi-faceted approach means SAP users can anticipate a continuously evolving and increasingly intelligent suite of enterprise applications powered by diverse and advanced AI capabilities, extending beyond this specific collaboration.

The shift to cloud-based, AI-ready ERP is accelerating. Cloud-based ERP is rapidly gaining market share and is expected to overtake on-premises solutions in the coming years. For instance, some data suggests cloud ERP will grow significantly faster than on-premises options through 2027. This shift is crucial as cloud environments provide the scalability, flexibility, and processing power necessary to effectively leverage GenAI. The partnership between TCS and SAP aims to accelerate this transition, enabling SAP users to swiftly access and benefit from embedded AI features within platforms like SAP S/4HANA Cloud.

Leverage partner expertise for complex transformations. Adopting GenAI and migrating to the cloud, particularly with a comprehensive offering like RISE with SAP, involves significant technical and organizational changes. Leveraging experienced partners like TCS, with their deep SAP knowledge and established frameworks such as the Agile Innovation Cloud and PacePort network, can be critical for success. TCS’s extensive SAP practice, which comprises over 21,000 consultants, and its track record in large-scale cloud migration projects provide the expertise and structured approach needed to navigate these complexities. This can help SAP users de-risk their transformation journeys, accelerate implementation timelines, and ensure that the integration of GenAI delivers tangible business outcomes.