American pharmacy retailer Walgreens Boots Alliance (WBA) has expanded its strategic partnership with IT services provider Tata Consultancy Services (TCS), the company said on Monday. The 10-year deal, valued at over $1.5 billion, is part of WBA’s initiative to advance the transformation of its global IT operation to fast-track digitisation and drive efficiencies.
Last November, the Mumbai-based TCS had said it had a multi-year IT outsourcing contract from Scotland-based Phoenix Group, which the industry estimated to be worth $2 billion.
While the retail segment witnessed muted growth for TCS in the past year, it had indicated that customers were spending on cost optimization projects. The WBA contract is one of the largest retail segment deals reported by the IT major.
During the Q3 press conference, TCS chief executive and managing director Rajesh Gopinathan said the deal will help WBA transform its pharma portfolio systems.
Francesco Tinto, senior vice-president and global chief information officer, WBA, said: “The TCS strategic partnership will enhance our ability to rapidly address evolving business needs, support large-scale global technology solutions and promote investment in truly differentiating capabilities through a modernized platform."
TCS will launch a new operating model for IT run and operational services, enabling WBA to accelerate its digitization programme to advance innovation for customers, drive organizational efficiencies across the company and further reduce its cost base.
The expansion of the WBA and TCS strategic partnership is based on WBA’s review of its IT operating model and vendor landscape. As a result, the WBA global IT team will focus on leading and supporting strategic technology projects that create customer value through the development of new digital products and services on its business platforms.
Following a period of transition, TCS will provide application maintenance and support, infrastructure and security operations. TCS will blend artificial intelligence, machine learning and advanced software engineering to enhance operational resilience and boost productivity.