Bengaluru: Tata Consultancy Services (TCS) has won a five-year technology services mandate for Best Buy’s India global capability centre (GCC), in a deal estimated at around ₹2,000 crore. The contract marks a significant expansion of TCS’s existing relationship with the US-based consumer electronics retailer and will cover areas including data, analytics and artificial intelligence.

TCS emerged ahead of Accenture in the final stage of Best Buy’s selection process, while Wipro was reportedly among the companies considered during the initial stages. The deal highlights the growing competition among Indian and global technology services companies for large GCC and technology outsourcing contracts.

Five-year mandate covers AI, data and analytics

Best Buy had issued a request for proposal (RFP) for technology services covering its India GCC operations. According to people familiar with the process cited in the report, TCS won the mandate on the strength of competitive pricing, aggressive service-level agreements and productivity benefits.

The five-year engagement covers Best Buy’s India GCC as well as a wider technology services mandate. Its scope includes data, analytics and AI, giving TCS a broader role in supporting the retailer’s technology operations.

The estimated ₹2,000-crore value covers the GCC operations and the broader technology services engagement. However, the companies themselves had not publicly disclosed the contract value at the time of the report. TCS, Accenture, Wipro and Best Buy had also not responded to requests for comments.

Best Buy’s Bengaluru centre has around 600 employees

Best Buy’s India GCC is located in Bengaluru and has around 600 employees. The centre has become an important part of the retailer’s technology and digital transformation strategy.

Best Buy established a 70,000-square-foot technology centre in Bengaluru in 2024. The facility was designed as an innovation hub covering digital strategy, product management, design, engineering, infrastructure and operations.

The retailer had said the India hub would play an important role in developing innovation around mobile and AI platforms. Teams working from the centre have therefore been positioned to support areas extending beyond conventional back-office functions.

With TCS now taking over the GCC operations under the new mandate, the Bengaluru centre is expected to become part of a broader technology services relationship between the two companies.

TCS expands an existing Best Buy relationship

The Best Buy mandate is not an entirely new relationship for TCS. The IT services major already provides technology services and supports digital transformation initiatives for the retailer.

HFS Research CEO Phil Fersht estimated the existing TCS relationship with Best Buy at between $75 million and $100 million in annual revenue, while noting that there is no publicly disclosed contract value.

The new five-year engagement could therefore deepen TCS’s role within Best Buy’s technology ecosystem and expand the range of services it provides.

The focus on AI and digital commerce is particularly significant as retailers increasingly rely on technology for customer experience, product discovery, data-driven decision-making and digital operations.

Why the deal matters for TCS

The estimated ₹2,000-crore contract comes at a time when the Indian IT services industry is facing a changing demand environment. Artificial intelligence is reshaping traditional technology services, while clients are increasingly looking for technology partners capable of supporting AI, cloud, data and digital transformation at scale.

For TCS, winning a major GCC-related mandate against global rival Accenture strengthens its position in this competitive market.

The contract also provides an opportunity for TCS to participate more deeply in Best Buy’s AI and digital commerce initiatives rather than limiting its role to conventional IT outsourcing.

The company has been increasing its focus on AI as clients move from experimental projects towards larger deployments. TCS’s AI business has been growing, although it remains a relatively small portion of the company’s overall revenue base.

TCS versus Accenture in the final round

TCS and Accenture were reportedly the final contenders for the Best Buy India GCC mandate. TCS ultimately secured the five-year engagement after the selection process.

Competitive pricing, service-level commitments and productivity improvements were among the factors that helped TCS emerge ahead, according to the report. Wipro was also reportedly part of the initial consideration.

The outcome underlines the intensity of competition for GCC and outsourcing mandates as multinational companies expand their technology operations in India.

GCCs have become increasingly important to India’s technology sector, with multinational companies using their Indian centres for higher-value functions such as AI engineering, product development, cybersecurity, cloud architecture and digital transformation.

Best Buy increases focus on AI and digital commerce

Best Buy’s decision comes as the retailer continues to strengthen its technology capabilities. The company reported revenue of $41.7 billion in FY2026, compared with $41.5 billion a year earlier. Comparable sales increased 0.5% during the year.

Computing and mobile phones were among the categories supporting growth, while declines in home theatre and appliances partly offset those gains.

As consumer behaviour increasingly shifts towards digital channels, technology has become central to Best Buy’s retail strategy. AI can support areas ranging from customer interaction and personalisation to data analysis and digital commerce.

The Bengaluru centre’s role in mobile and AI platforms therefore fits directly into this wider transformation.

A significant GCC win amid changing IT landscape

The estimated ₹2,000-crore Best Buy mandate gives TCS a sizeable technology services opportunity and strengthens its existing relationship with one of the largest consumer electronics retailers in the US.

More importantly, the contract reflects the changing nature of technology outsourcing. Large clients are increasingly seeking integrated capabilities covering GCC operations, data, analytics, AI and digital transformation.

For Bengaluru, the deal also reinforces the city’s importance as a hub for global technology and capability centres.

While the contract value remains an estimate reported by sources rather than a figure publicly disclosed by the companies, the five-year mandate represents a notable win for TCS over Accenture and comes at a time when AI-led transformation is reshaping the global IT services industry.