TCS wins Best Buy's India GCC mandate

Tata Consultancy Services (TCS) has won a five-year technology services mandate for Best Buy's India global capability centre (GCC) operations, according to multiple reports. The deal, estimated to be worth around ₹2,000 crore, covers Best Buy's Bengaluru-based GCC as well as broader technology services across data, analytics, and artificial intelligence.

The development was first reported by The Times of India, which cited people familiar with the matter. TCS emerged ahead of Accenture in the final stage of the selection process, with Wipro also understood to have been part of the initial shortlist, the report said.

Competitive bidding and deal terms

Best Buy had floated a request for proposal (RFP) for a technology services engagement covering its India GCC operations. TCS won the mandate on the back of competitive pricing, aggressive service-level agreements, and productivity benefits, sources told The Times of India.

The five-year engagement is estimated at around ₹2,000 crore, though the exact contract value has not been publicly disclosed by the companies. Emails sent to TCS, Accenture, Wipro, and Best Buy seeking comment did not elicit a response at the time of reporting, according to The Times of India.

Expanding relationship

The new mandate is expected to deepen TCS's existing relationship with Best Buy, which already includes technology services and digital transformation work. Phil Fersht, CEO of HFS Research, estimated the existing TCS relationship with Best Buy at $75 million to $100 million in annual revenue, while noting that there is no publicly disclosed contract value.

Best Buy established a 70,000-square-foot technology centre in Bengaluru in 2024 as part of its digital transformation efforts. The centre was designed as an innovation hub covering digital strategy, product management, design, engineering, infrastructure, and operations. In 2024, Brian Tilzer, then Best Buy's chief digital, analytics and technology officer, told The Times of India that the intention was to make the India hub the "heart of innovation" around mobile and AI platforms, with teams being built and ramped up in those areas.

The India centre has become more strategic as Best Buy steps up investments in AI and digital commerce. Best Buy reported revenue of $41.7 billion in fiscal 2026, up from $41.5 billion a year earlier, as per Free Press Journal. The company recorded modest growth in comparable sales, supported by demand for computing and mobile products, which partly offset declines in categories such as home theatre and appliances.

Industry context

Best Buy is the largest consumer electronics specialty retailer in the United States, as noted by India Today. The company's annual report identified AI as a key digital priority for fiscal 2027, according to The Times of India. In a related development, Best Buy's board has selected Jason Bonfig, chief customer, product and fulfilment officer, to succeed Corie Barry as CEO. Barry will step down from the CEO role and board on October 31, and Bonfig will join the board, The Times of India reported.

Fersht noted that the bigger story is how work is being divided among major technology providers as Best Buy shifts more of its technology estate towards AI-enabled operations, as reported by The Times of India.

The deal highlights the growing competition among Indian and global technology services companies for large GCC and technology outsourcing mandates, according to India Today.