TCS bags deal from Walgreens Boots worth $1.5 billion

Tata Consultancy Services (TCS) has baged a deal from US pharma retailer Walgreens Boots Alliance (WBA). The deal is worth $1.5 billion and for a tenure of 10 years. TCS will help WBA to transform its technology operations.

TCS will take over staff, consolidate vendors, run the entire IT operations of Walgreen Boots, which is one of the world’s largest retailers. TCS will modernise applications and cloud enable the technology operations for the US retailer, which is an existing customer for over a decade.

TCS has committed to save cost for WBA during the deal tenure. It will provide managed services like application maintenance and support, infrastructure and security operations.

“The deal marks a pivot in the relationship between Walgreens and TCS and takes us to become their growth and transformation partner. TCS is transforming their whole IT operating model,” Rajashree Ramakrishnan, Chief Marketing Officer, TCS said.

The new technology operating model will be a part of Walgreens’ strategy to manage costs better under its ‘Transformational Cost Management Program’.

WBA is building a scalable, sustainable and globally unified lT operating model that is focused on digital transformation, automation of service delivery and innovation," said Francesco Tinto, Senior Vice President, Global Chief Information Officer, WBA said in a statement. "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."