Tata Consultancy Services has entered into a multi-year agreement with US electronics retailer Best Buy to transition the retailer’s Global Capability Centre in India to TCS and transform it into an AI-focused technology and innovation hub.
Under the agreement announced on October 1, the Best Buy India entity will transition to TCS while continuing to support the retailer’s business operations. The companies plan to gradually develop the centre into what they describe as an AI-native Capability Centre, bringing together Best Buy India’s retail and enterprise knowledge with TCS’ technology, engineering, artificial intelligence and global delivery capabilities.
The transformation will use TCS’ Global Value & Innovation Centres framework. Teams at the centre will work on redesigning workflows, developing AI-powered experiences and solutions, and scaling technology capabilities across Best Buy’s business.
Best Buy India employees will become part of TCS’ global organisation as part of the transition. TCS said the move is intended to retain the team’s existing business and technology knowledge while giving employees access to its learning ecosystem, AI skills programmes and global career opportunities.
Krishnan Ramanujam, President, Consumer Business Group at TCS, said Best Buy had built a technology organisation with deep knowledge of its customers and business. He said combining that expertise with TCS’ retail, AI, engineering and execution capabilities would create an AI-native capability engine aligned with Best Buy’s priorities.
Ahrey Smith, Vice President of Technology Strategy and Transformation at Best Buy, said the company’s India team had played an important role in advancing its priorities. She added that TCS brought an understanding of the business alongside technology and AI capabilities that could build on the team’s existing strengths.
The agreement also expands TCS’ focus on the GCC market as multinational companies increasingly use their India centres for technology development, data, engineering and AI-led transformation rather than only back-office functions.
TCS has been building a broader business around establishing, scaling and transforming capability centres. In June, the company launched a dedicated unit focused on Global Value & Innovation Centres, including helping enterprises develop AI-native GCCs.
For Best Buy, the arrangement retains the knowledge developed within its India operation while moving the centre under TCS. The companies have not disclosed the financial terms of the announced agreement.
The transition reflects a model in which an enterprise GCC is being combined with a technology services provider’s engineering and AI capabilities, with the India centre expected to evolve into a broader AI-led capability hub over time.
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