Tata Consultancy Services (TCS) is set to take over the India Global Capability Centre (GCC) of US-based consumer electronics retailer Best Buy under a multi-year agreement, in a move that will combine Best Buy’s retail and technology expertise with TCS’s artificial intelligence, engineering and global delivery capabilities. The companies announced the agreement on October 1, 2026, saying the Best Buy India entity will transition to TCS while continuing to support Best Buy’s business.
The centre will gradually be transformed into an AI-native capability centre, with teams expected to redesign workflows, develop AI-powered applications and scale new technology solutions across Best Buy’s operations. The financial terms, exact duration of the agreement and number of employees moving to TCS have not been publicly disclosed.
The deal represents another major development in India’s rapidly expanding GCC ecosystem, where multinational companies have established technology and innovation centres to support global operations. It also highlights how large IT services companies are increasingly looking to take over or manage captive technology centres as enterprises accelerate their adoption of artificial intelligence.
Best Buy India Centre Moves Under TCS
Under the agreement, the Best Buy India entity will transition to TCS while maintaining business continuity for the US retailer. Existing employees will join TCS’s global organisation, allowing the technology and business knowledge developed inside Best Buy’s India operation to remain available to the retailer.
TCS said employees will also gain access to its global learning ecosystem, AI skills development and international opportunities.
This approach allows Best Buy to retain the expertise of its India technology workforce while bringing in TCS’s larger technology infrastructure, engineering capabilities and AI expertise.
Best Buy’s India team has played an important role in supporting the retailer’s technology priorities, and the new arrangement is designed to build on that foundation rather than simply replace it. Best Buy’s technology leadership said the company wanted a partner that understood both its business context and the value of its existing India team.
The Centre Will Become AI-Native
The most significant part of the agreement is TCS’s plan to transform the GCC into an AI-native capability centre.
Rather than operating primarily as a conventional technology support organisation, the centre will increasingly focus on AI-powered workflows, technology development and business innovation. TCS said teams will redesign processes, develop AI-powered experiences and solutions and scale these capabilities across Best Buy’s business.
The transformation is part of TCS’s broader strategy of helping companies move their GCCs from traditional delivery centres toward organisations that develop technology, products and business outcomes.
For Best Buy, this could mean greater use of AI in areas such as digital commerce, customer experiences, data analysis, technology operations and other retail functions. The companies have not disclosed a detailed list of specific AI applications that will initially be deployed.
TCS Expands Its GCC Strategy
The Best Buy agreement comes only months after TCS launched its Global Value & Innovation Centres (GVIC) Business Unit, specifically designed to help enterprises establish AI-native GCCs and transform existing centres into innovation-led operations.
TCS said GCCs are increasingly evolving from delivery hubs into strategic enterprise assets that can own products, platforms and business outcomes.
The Best Buy deal provides a major example of that strategy in action. Instead of simply providing outsourced IT services, TCS will take over an existing captive centre and work to transform its operating model around AI and innovation.
TCS appointed Soumen Roy to lead its GVIC business unit when it was launched in June 2026. The unit combines TCS’s GCC experience with its AI transformation capabilities and end-to-end services.
A Significant Move for India’s GCC Market
Global Capability Centres have become a major part of India’s technology industry. Multinational companies use these centres to conduct software development, engineering, analytics, research, finance, cybersecurity and other global functions.
The latest trend is increasingly focused on moving GCCs beyond cost-based operations and toward innovation, AI and product development.
The Best Buy transaction reflects this shift. Business Standard reported that some GCCs have struggled to mature beyond certain stages, creating opportunities for technology-service providers to take over and operate them. At the same time, IT companies are increasingly pursuing GCC-related business as they look for additional sources of growth.
This creates a changing relationship between multinational companies and Indian IT services firms. Instead of simply outsourcing individual projects, enterprises can hand over larger technology operations to a partner capable of managing and transforming an entire centre.
Best Buy Gets Access to TCS’s AI and Engineering Capabilities
For Best Buy, the partnership provides access to TCS’s large technology workforce and global delivery infrastructure.
The retailer already has significant technology operations in India, but TCS brings additional capabilities in areas including AI, engineering, enterprise technology and global execution. The combination could allow Best Buy to accelerate the development and deployment of AI solutions across its business.
TCS’s consumer-business division also has experience working with retailers and other consumer-focused companies.
The company said the partnership could eventually create a repeatable technology and innovation platform that could have applications beyond Best Buy and potentially across the wider retail industry.
The Deal Builds on TCS’s Growing AI Push
The Best Buy transaction fits into a much broader AI strategy at TCS.
The company has recently expanded its partnerships and investments around artificial intelligence, including collaborations with OpenAI and AMD. TCS has also been developing AI infrastructure in India and building industry-specific AI capabilities.
In its FY2026 annual report, TCS said it was deepening relationships with hyperscalers, enterprise software companies, semiconductor and hardware businesses and emerging AI-native companies. The company has also said it wants to expand its capabilities across the AI technology stack.
The Best Buy agreement gives TCS another opportunity to apply these capabilities within a large global retail business.
Earlier Reports Put the Deal at Around ₹2,000 Crore
Before the official announcement, reports in September suggested that TCS had won a technology mandate for Best Buy’s India GCC after competing with companies including Accenture and Wipro. Moneycontrol reported that the five-year engagement was estimated at around ₹2,000 crore and included GCC operations as well as data, analytics and AI services.
However, the latest official announcement from TCS and Best Buy does not disclose the financial value of the transaction.
The distinction is important because the earlier reported estimate should not be treated as the officially confirmed value of the new agreement.
Employees Will Continue Their Work With Best Buy
One of the central elements of the arrangement is workforce continuity.
Rather than eliminating Best Buy’s India technology operation, TCS will bring the employees into its own organisation. This means their existing knowledge of Best Buy’s systems, customers and technology environment can continue to be used.
At the same time, employees will gain access to TCS’s broader training programmes and AI-skilling opportunities.
This could become increasingly important as AI changes the type of work performed inside technology centres. Employees with knowledge of both retail operations and emerging AI technologies could play a role in developing new technology products and automated workflows for Best Buy.
Why the Deal Matters for TCS
For TCS, the agreement strengthens its position in the growing market for GCC transformation.
Traditional IT outsourcing involves a service provider delivering specific technology services to a client. A GCC transformation arrangement can be broader, involving the management of technology teams, business processes, AI development and innovation capabilities.
By taking over Best Buy’s existing India entity, TCS can demonstrate its ability to transition an established GCC into an AI-focused operation.
That could provide a model for similar engagements with other multinational companies that have established technology centres in India but want to accelerate their AI transformation.
AI Could Change the Role of GCCs
The Best Buy-TCS deal arrives at a time when artificial intelligence is changing how multinational companies think about their global technology operations.
Earlier GCC models often focused on software development, IT support, back-office processing and cost optimisation. Newer centres are increasingly being designed around AI engineering, product development, data science, cybersecurity and innovation.
TCS’s own GVIC strategy reflects this shift, with the company describing the evolution of GCCs from delivery hubs into strategic assets that own products, platforms and business outcomes.
The Best Buy centre is expected to follow that direction as it becomes increasingly AI-focused.
A New Chapter for Best Buy’s India Technology Operations
The transition of Best Buy’s India GCC to TCS marks a significant change in how the retailer’s technology operations will be organised.
The centre will retain its existing business knowledge while gaining access to TCS’s AI, engineering and global delivery capabilities. Over time, the goal is to transform the operation into an AI-native capability centre supporting Best Buy’s technology and business priorities.
For TCS, the deal strengthens its expanding GCC and AI businesses. For Best Buy, it creates a pathway to accelerate AI adoption while retaining the expertise of its existing India workforce.
The financial details and employee count remain undisclosed, but the strategic direction is clear: Best Buy’s India technology centre is moving from a traditional captive GCC model toward an AI-focused operation under TCS. As more global companies look to turn their Indian technology centres into AI and innovation engines, the Best Buy deal could become an important example of how India’s GCC landscape is changing.
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