TCS wins $1.5-b mega contract from Walgreens

TCS reported its first mega deal for 2020 on Tuesday with US pharmacy retailer Walgreens Boots Alliance expanding its strategic partnership with IT services provider for a 10-year deal, valued at over $1.5 billion.

The deal is part of WBA’s initiative to advance the transformation of its global IT operation to fast-track digitisation and drive efficiencies.

The deal marks a revival for TCS’ retail portfolio, which was lagging in terms of growth during the October-December quarter, a traditionally strong quarter for retail.

During an interview with BusinessLine recently, TCS CEO Rajesh Gopinathan had maintained that retail customers will continue to invest in cost optimisation projects and that the company remained positive on the sector.

Under the Transformational Cost Management Programme of the deal, TCS will take over some of WBA’s staff and run its entire IT operations.