Walgreens, TCS extends partnership for US$1.5bn

US-based pharmacy giant, Walgreens Boots Alliance (WBA), and Indian IT services firm, Tata Consultancy Services (TCS), have extended their partnership with a new 10-year deal, valued at US$1.5 billion

February 3, 2020

The 10-year deal will help create a new WBA IT operating model, improving efficiency and reducing costs through innovation and digitalisation

The partnership will help in the development of new digital services towards application maintenance, security, and overall infrastructure

Through cloud computing, Indian companies can now leverage AI, ML, IoT, robotics and blockchain tools in providing digital solutions across sectors

India’s cloud market expected to grow by 30 per cent by 2022, touching US$7.2 billion in value, compared with global growth of 16.5 per cent

The US-based pharmacy retailer, Walgreens Boots Alliance (WBA), and Indian IT services provider, Tata Consultancy Services (TCS), announced an extended partnership with a new 10-year deal on February 3 valued at US$ 1.5 billion. The partnership will aid the launch of WBA’s new operating model for IT services, further accelerating its digitalisation efforts towards improving innovation, organisational efficiency, and overall cost-effectiveness of operations. It also enables the WBA global IT team to develop new digital products and services, creating significant customer value through specialised TCS IT services pertaining to application maintenance and support, security operations, and overall infrastructure.

Through such partnerships, Indian-based IT firms can leverage artificial intelligence (AI), machine learning (ML), and advanced software engineering solutions in facilitating growth globally. As described by WBA Senior VP & CIO, Francesco Tinto, the creation of a “scalable, sustainable and globally unified IT operating model” will assist in rapidly addressing evolving business needs, both locally and globally, and in promoting investment into the IT sector.

With the advent of cloud computing and digitisation across sectors, adoption of new-gen technologies such as AI, ML, internet of things (IoT), robotics, and blockchain has become a core component of business success. By the end of 2018, Nasscom, the apex body of the US$155 billion Indian IT-BPM industry, valued the global cloud market at US$ 190 billion, in which India’s contribution was already at US$ 2.5 billion and steadily rising. The compound annual growth rate (CAGR) of the global cloud market is estimated to grow 16.5 per cent by 2022, however, the sector in India is said to experience 30 per cent growth, touching US$7.2 billion, in the same period. The Digital India initiative, along with the country’s growing IT capabilities, will also play an important role in improving FDI and foreign trade relations.