A general view shows the UK supermarket Asda, as the store launches a new sustainability strategy, in Leeds, Britain, October 19, 2020.
A general view shows the UK supermarket Asda, as the store launches a new sustainability strategy, in Leeds, Britain, October 19, 2020. Reuters / Molly Darlington

British retail giant Asda has entered a deal with India's top software services exporter Tata Consultancy Services (TCS) to accelerate its digital transformation to ensure its smooth divestiture from Walmart.

The supermarket group, formerly owned by retail giant Walmart, announced Wednesday that it will implement a new organization-wide IT operating model through the multi-year partnership.

A new digital core will be built by TCS, which is known for its expertise in computing, artificial intelligence (AI) and cybersecurity. Multiple cloud-based ERP platforms will be integrated to streamline and optimize supply chain forecasting, buying and merchandising processes, human resources processes, warehouse management and e-commerce operations for the retail giant, which has more than 630 stores operating in the U.K.

"We are confident that this collaboration with TCS will be one of the engines to deliver such a large technology transformation, where we are in the process of reimagining retail. TCS is going to bring together cutting-edge technologies and help Asda employees and customers have a seamless experience," said Carl Dawson, chief digital and technology officer at Asda.

"We are proud to extend our partnership with Asda and look forward to working closely with them to drive this extensive enterprise reinvention," said Abhijit Niyogi, business head of retail for the United Kingdom and Europe at TCS. "We will leverage the power of data and AI to deliver innovative, industry-leading retail technology solutions, transforming their core retail operations, employee experience and supply chain, and create opportunities for new business models."

TCS' experience in retail technology transformation and innovation is expected to aid Asda's digital revamp. The partnership also includes automating Asda's IT operations to provide a better experience for employees and customers through TCS' machine-first delivery model.

"We have a long-term vision to grow Asda and bring our great heritage in value to even more communities – and our technology will form a key part of delivering this vision. We have partnered with TCS because they bring experience in retail technology transformation and innovation. We look forward to working with them to accelerate our digital transformation journey and to unlock the potential of our business," said Mohsin Issa, Asda's chief executive officer.

Asda is currently Britain's third largest supermarket group. It became part of Walmart's portfolio after the U.S. retail giant acquired the company in 1999. Discussions about a new partnership arrangement began in 2020. Billionaire brothers Mohsin and Zuber Issa and private equity group TDR bought it from Amazon in 2021.