TCS wins $1 billion JLR biz to develop future-ready digital core, optimise Reimagine growth strategy

Tata Consultancy Services has announced that it has entered into a strategic partnership with the Digital unit of Tata Motors-owned luxury carmaker JLR to transform, simplify, and help manage its digital estate, and build a new future-ready, strategic technology architecture that will support JLR's 'Reimagine' strategy, announced in February 2021.

TCS has had a longstanding relationship with JLR Digital, spanning over a decade, helping the luxury automaker optimise as well as pursue its growth and innovation agenda. The new partnership, valued at £800 million (US$ 989 million / Rs 8,154 crore) 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; transform, simplify, and manage its Digital estate; and build a new, future-ready digital core that will support its business transformation.

As a part of the new partnership, TCS will deliver a broad range of services spanning application development and 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.

Outside of the new contract, TCS is partnering with JLR to help accelerate its vision of modern luxury client experience tailored to different markets globally.

"We are pleased to be selected by JLR as their strategic partner to help manage and transform their Digital estate and build a new, future-ready digital core that will support their Reimagine strategy and electrification plans. This is a truly bi-modal partnership where the efficiencies from leaner operations will help fund the new digital core, while our contextual knowledge and expertise will de-risk and accelerate that transformation,” said Anupam Singhal, Business Group Head - Manufacturing, TCS.

Nigel Blenkinsop, Executive Director, Enterprise Performance & Quality, JLR said: “Building world class partnerships and maximising the benefits of being part of the Tata Group is a key part of our Reimagine strategy. Consistent with this, we are pleased to expand our long-term relationship with TCS to accelerate our digital transformation. Their breadth of capabilities and deep understanding of our business will further enhance our ability to transform and simplify our Digital estate at pace, ensuring we can deliver a modern luxury experience for our clients.” 

REIMAGINING THE FUTURE

JLR’s Reimagine strategy aims to transform the company through a value creation approach, delivering quality and profit, over volume. Designed to address the key challenges facing the business, it will help JLR become a more agile business, with a simplified manufacturing operation and sustainability at its core en route to producing the world’s most desirable luxury vehicle. The carmaker’s roadmap to net-zero emissions has the first battery EV from Range Rover slated for launch in 2024, followed by the Jaguar brand going all-electric by 2025. The Reimagine strategy aims to generate double-digit EBIT margins and positive cashflow, with an ambition to achieve positive cash net-of-debt by 2025. The overarching goal is for JLR to be one of the most profitable luxury manufacturers in the world.

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JLR partners Tata Technologies to accelerate digital transformation