Tata Consultancy Services (TCS), one of the largest IT services and consulting companies in the world, has once again shown why it is considered the partner of choice for industry-leading organisations. On 15 September 2025, TCS announced a strategic partnership with The Warehouse Group (TWG), New Zealand’s largest general merchandise retailer.

This partnership will not only focus on technology modernisation and digital transformation, but it will also include AI-driven workforce upskilling and initiatives to reduce costs significantly. According to both companies, this collaboration is expected to deliver cost savings of up to $40 million over five years, while also giving TWG the ability to leverage digital technologies, data management, and AI expertise.

A Strategic Milestone for The Warehouse Group

The Warehouse Group is widely regarded as one of the most iconic retail brands in New Zealand. Like many other retailers around the world, TWG has faced the challenges of rising costs, increased competition, and the need for digital adoption. Over the past year, TWG had already begun cost-cutting initiatives to stabilise its financial performance.

Mark Stirton, Group CEO of The Warehouse Group, highlighted that the partnership with TCS marks a new chapter. In his words, “We’ve spent the past year lowering costs, but this partnership allows us to go deeper. TCS will build on our current cost initiatives and unlock the capability and capacity to obtain more value from the technology investments we’ve made to date.”

The collaboration is not just about cutting costs, but also about building capabilities that will help TWG stay competitive in the future retail environment. By reducing technology debt, enhancing platform standardisation, and modernising IT systems, TWG aims to free up internal teams so that they can focus more on customer value creation.

The Role of TCS in the Partnership

TCS brings to the table decades of expertise in IT services, consulting, digital technologies, and artificial intelligence. For this partnership, TCS will focus on:

• Streamlining and consolidating platforms across TWG’s retail operations.

• Helping TWG maximise value from existing technology investments.

• Driving operational efficiency through IT modernisation.

• Supporting TWG’s workforce with digital and AI upskilling programs.

• Implementing strong governance and transparent reporting to ensure sustained improvements.

Girish Ramachandran, President – Growth Markets, Tata Consultancy Services, expressed TCS’s commitment: “We are proud to be a strategic partner to The Warehouse Group for this pivotal phase of transformation. Leveraging our global expertise in retail technology, data and AI, we are committed to supporting one of New Zealand’s largest and most iconic retail brands in streamlining their systems and enhancing capabilities through AI adoption and thereby laying the foundation for sustained, long-term value creation.”

Cost Savings and Efficiency

One of the most notable aspects of this partnership is the potential for cost savings of up to $40 million over a five-year period. These savings are expected to come from:

• Licensing cost reductions by optimising existing systems.

• Consolidating managed services into streamlined operations.

• Improving efficiency in IT service delivery.

• Freeing up TWG’s in-house technology teams to focus on core retail objectives.

For a large retailer like TWG, which operates in a competitive and margin-sensitive industry, these savings will be extremely important. At the same time, the operational benefits of a more modern IT landscape will also drive long-term growth.

Focus on Digital and AI Upskilling

One of the most future-oriented parts of this partnership is TCS’s plan to support TWG in digital and AI workforce upskilling. As the retail industry becomes more digital, employees need to be equipped with the right skills to adapt.

Through training programs and AI-focused learning, TCS will ensure that TWG’s workforce is not only capable of managing new technologies, but also confident in applying them to deliver customer-centric outcomes. This aligns with TCS’s broader focus on talent development and digital empowerment, not only in India but across global markets.

TCS’s Expertise in Retail Sector

TCS is already a trusted partner for some of the world’s top 10 global retailers. The company’s retail expertise covers:

• Store operations management.

• Supply chain optimisation.

• Merchandising and pricing strategies.

• Marketing innovations.

• Omnichannel retailing strategies.

• Business model reinvention for modern retail.

For The Warehouse Group, TCS will deploy two of its key platforms:

• TCS Omnistore™ – an AI-powered, unified composable commerce platform designed to enhance omnichannel retailing.

• TCS Optumera™ – an AI-powered strategic intelligence platform that helps retailers make optimised merchandising decisions across the value chain.

These platforms have already been used by leading global retailers to improve decision-making, increase efficiency, and create better customer experiences.

TCS’s Commitment to New Zealand

This partnership also reaffirms TCS’s long-standing commitment to New Zealand. TCS has been present in the country for years, working with clients across industries and driving innovation through its Co-Innovation Network (COIN™).

In 2022, TCS also led the development of the Asia Pacific Digital Sustainability Index, which has helped shape the region’s approach to sustainable digital transformation. Beyond business, TCS is also committed to fostering digital talent in New Zealand through its flagship STEM empowerment programs GoIT™ and GoIT™ Girls. These programs inspire students to pursue careers in technology and innovation, strengthening the future workforce.

Broader Impact of the Partnership

This strategic partnership is not only important for TCS and TWG, but it also carries broader implications:

1. For the Retail Sector: It demonstrates how AI, digital transformation, and IT modernisation are becoming central to the success of retail companies globally.

2. For New Zealand: It highlights how international companies like TCS are investing in the country’s technology ecosystem.

3. For Employees: It ensures that workforces are future-ready, with skills in digital technologies, AI, and advanced retail solutions.

4. For Shareholders: With the potential for $40 million in cost savings, the partnership will strengthen shareholder value for TWG.

TCS: A Global Technology Leader

TCS is not just an IT services provider. Over the decades, it has transformed into a digital transformation and technology partner for some of the world’s biggest companies.

• Founded in 1968, TCS is part of the Tata Group, one of India’s most respected business houses.

• The company employs over 600,000 people across 55 countries.

• TCS generated revenues of over US $30 billion in the fiscal year ended March 2025.

• The company runs 202 service delivery centres worldwide.

• It has been consistently recognised as a top employer across six continents.

TCS also sponsors 14 of the world’s most prestigious marathons and endurance events, including the TCS New York City Marathon, TCS London Marathon, and TCS Sydney Marathon, showcasing its focus on community empowerment, sustainability, and health promotion.

Looking Ahead

The Warehouse Group’s decision to select TCS as a strategic partner highlights a growing global trend where retailers are relying on technology leaders to drive transformation. With AI adoption, platform modernisation, and workforce upskilling at the centre of this partnership, both companies are poised to deliver sustainable long-term value.

For TWG, the partnership ensures cost efficiency, modernised IT, and stronger customer engagement. For TCS, it strengthens its retail industry footprint in New Zealand and reinforces its position as a trusted global partner for digital transformation.

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