Tata Consultancy Services (TCS), the IT behemoth of the Tata Group, has strengthened its relationship with a long-term customer Walgreens Boots Alliance (WBA). The fresh arrangement, worth $1.5 billion, will run for over 10 years and is aimed at completely transforming the IT operating model that WBA has been following.
For the record, WBA is one of the largest players in the wholesale and retail pharmacy sale with its business operations present in over 25 countries. The Alliance employs 440,000 personnel and runs 18,750 stores in these countries. To that extent, this is a huge contract that TCS has landed and the Indian IT major will be a strategic partner in this expanded relationship. The transformation under the new contract will see the legacy IT systems being converted to the latest digital models where WBA will look to provide increased customer value through improved product offerings and services. TCSâ€™ role will be to run and operate managed services, including application maintenance and support, infrastructure and security operations.
TCS enjoys an advantage in being familiar with the operations of WBA and will be able to respond in a more structured manner to the changing technological needs of the pharmacy giant.
This information has been revealed through the filing TCS has made to the Bombay Stock Exchange (BSE) as part of the regular process of keeping the exchange informed of major developments in the company. This news would cheer the market which took a huge beating on Budget day but recovered slightly on Monday.