TCS to take over Best Buy India GCC to build AI hub

Tata Consultancy Services (TCS) has signed a multi-year agreement to take over US electronics retailer Best Buy’s captive technology centre in India, plotting a transition that will turn the facility into an artificial intelligence hub.

Under the deal, the Indian IT services giant will absorb Best Buy India’s entire workforce. TCS said there will be no immediate job cuts. Instead, the retailer's local employees will join TCS's global organisation, allowing them to keep their roles while gaining access to the IT company's wider training and AI development systems.

Shifting focus to artificial intelligence

The India-based centre will be transformed into what the companies are calling an "AI-native Capability Center". TCS plans to combine Best Buy’s deep retail experience with its own engineering, technology, and machine-learning systems.

Krishnan Ramanujam, president of the consumer business group at TCS, said the partnership would "create an AI-native capability engine" aligned with the retailer’s growth plans.

Best Buy's vice president, Ahrey Smith, said the transition is designed to offer staff "meaningful opportunities" to learn and progress within a larger technology firm, while building on the existing team's strengths.

The evolution of India's tech hubs

The deal reflects a broader trend in how multinational corporations run their Indian tech hubs, traditionally known as Global Capability Centers (GCCs).

Originally set up primarily as low-cost back offices for basic IT support and administrative tasks, these centres are increasingly being upgraded to handle high-value research and development, data analytics, and advanced artificial intelligence projects. By handing the facility's operations over to TCS, Best Buy can scale its engineering capabilities without the administrative burden of running a standalone captive unit.