TCS to take over Best Buy’s India GCC, turn it into AI capability centre

The latest market report highlights that Tata Consultancy Services (TCS) will take over American electronics retailer Best Buy's Global Capability Centre (GCC) in India as part of a multi-year deal, with the IT services major planning to transform the centre into an AI-focused capability hub.

Under the agreement announced on October 1, Best Buy's India entity will transition to TCS while continuing to backing the US retailer's business. The centre will gradually be transformed into an AI-native capability centre, TCS stated.

The deal will bring Best Buy India's technology and retail expertise together with TCS' technology, engineering and artificial intelligence capabilities. The firms stated the partnership will focus on redesigning workflows, developing AI-powered solutions and scaling capabilities across Best Buy's business.

Best Buy India employees will join TCS' global organisation, retaining their existing business and technology knowledge while gaining access to TCS' learning programmes, AI skills and global opportunities.

“Best Buy has built a firm technology organisation 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,” stated Krishnan Ramanujam, president, Consumer Business Group, TCS.

Best Buy stated its India team has played an important role in advancing its technology priorities and that TCS would build on the team's existing strengths.

Ahrey Smith, Vice President of Technology Strategy and Transformation, Best Buy, further noted, “TCS brings that understanding, along with the technology and AI capabilities to build on the team's strengths and meaningful opportunities for employees to continue learning and growing in their careers.”

The transaction additionally strengthens TCS' GCC business, as firms increasingly look to technology services providers to build, operate and transform their captive technology centres.

TCS stated the Best Buy partnership will use its Global Value & Innovation Centres (GVIC) framework to develop the centre into an AI-led engine focused on innovation and enterprise value.

In June, TCS rolled out a dedicated business unit focused on helping enterprises establish and scale AI-native GCCs. The IT major had appointed Soumen Roy as head of TCS GVIC. Roy most recently served as TCS Canada country head.