TCS likely to close new deals worth $1 bn with Marks & Spencer soon: Report


Tata Consultancy Services (TCS), the country’s largest information technology services exporter, is expected to close additional deals worth $1 billion with British food-to-clothing retailer Marks and Spencer soon, according to a Economic Times report.

According to the report, multiple deals are in the pipeline apart from the 2018 deal renewal, between TCS and Mark and Spencer are set to close in the coming weeks.

As an existing partner, the IT services exporter is in the frontline to win these deals, the report said.

TCS has been working with Mark and Spencer for over a decade, to transform the British retailer’s human resource operations.

TCS has provided human resource solutions for more than 80,000 employees of Marks and Spencer. Furthermore, the Indian IT giant has also provided solutions using the Oracle supply chain management platform.

M&S plans 3,400 new jobs after Covid axe

Earlier in January, Marks and Spencer announced plans for more than 3,400 new jobs thanks to store openings, following sizeable shop closures and job losses during the pandemic.

In a statement, M&S said that it would open 20 new large stores across the UK. It comes after the group axed 7,000 jobs as Britain suffered Covid lockdowns.

The group said it would invest £480 million ($585 million) in the latest project.

The changes would result in more than “3,400 new jobs” by next year, the statement added.

“It comes after M&S reported a bumper Christmas period,” noted Victoria Scholar, head of investment at Interactive Investor.

“However, cost pressures and macroeconomic headwinds continue to be key challenges.”

Scholar said shares in M&S had lost about one third of their value since a year ago.

Like a number of Western companies, M&S last year exited from Russia following the country’s invasion of Ukraine.

In 2021, M&S decided to shut more than half of its shops in France, as Britain’s departure from the European Union affected post-Brexit supplies of fresh and chilled food products.

“Whether it can maintain the momentum as the headwinds provided by rising costs and increased pressures on household budgets continue to bear down on the business is the key test facing management,” said AJ Bell investment director Russ Mould.

With agency inputs

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