Annons

Handshake Worth Billions: TCS Takes Over SKF’s Global IT and Lays the Foundation for Next-Gen AI

"The coming decade of industrial manufacturing will be defined by how deeply companies integrate AI into design, production, and service delivery," notes SKF CEO Rickard Gustafson.
To lead this transformation, SKF has signed a strategic global agreement with IT consultant Tata Consultrancy Services (TCS) to drive the AI transformation of its operations. The deal entails TCS taking over the operation of SKF's global IT infrastructure—encompassing business systems, data security, and connectivity—across 130 countries. The overarching goal is to modernize the technology landscape, standardize workflows, and build a robust AI foundation for the entire group.
This decision is particularly intriguing given SKF's recent, highly active approach to IT. The company has already initiated a massive cloud migration and upgrade of its SAP S/4HANA Cloud system via ’RISE with SAP.´ This effort is designed to unify global operations on a single real-time platform, allowing SKF to integrate embedded AI and machine learning to streamline financial and order-processing workflows.
For TCS, this agreement represents a major milestone. While financial details remain undisclosed, industry analysts estimate the contract to be worth several hundred million dollars. It is a substantial investment, but one that will enable SKF to build a future-proof digital organization.
"The coming decade in industrial manufacturing will be defined by how deeply companies integrate AI into their design, production, and service delivery. SKF intends to lead that transformation,” he says, adding: ”With TCS as our partner, we are not just modernizing our technology; we are also building the operational and AI foundations that will set new standards for precision and customer value in our industry. This is a long-term commitment between two companies that share a clear vision for the future of industrial manufacturing."
TCS CEO K. Krithivasan agrees: "Our partnership will modernize their global IT environment and build a robust, scalable digital foundation for the future. Together, we are using data-driven intelligence and AI to create a nimble organization capable of adapting quickly to technological shifts. This collaboration reflects our shared commitment to making SKF an industry-leading, AI-driven manufacturer."
Behind the scenes, however, SKF's current industrial IT ecosystem remains a fragmented mix. In product development, the company relies primarily on PTC's Creo for CAD design and Windchill for managing e-BOMs (engineering Bills of Materials). Manufacturing operations introduce further variety: Siemens NX handles CAM design and processes, while the Gothenburg facility utilizes Siemens Teamcenter. Meanwhile, SAP serves as the overarching ERP backbone.

SKF’s decision to forge a comprehensive strategic partnership with TCS represents a critical step toward building a scalable, future-ready digital foundation. This is a pragmatic strategy, given the complex hurdles SKF—and the broader industrial manufacturing sector—face when embedding advanced AI and automation across a global IT landscape. The scope of this modernization spans everything from ERP adoption to infrastructure and security.

While current press materials do not detail how these new systems will integrate with SKF’s existing PLM and manufacturing pipelines, the company’s established R&D infrastructure leans heavily on PTC’s Creo (CAD) and Windchill (PLM). Meanwhile, Siemens Teamcenter has long served as the data backbone on the production floor. How TCS will unify or interact with this dual-vendor engineering ecosystem will be a crucial factor to watch.

Therefore, TCS plays a critical role in SKF’s AI strategy.
From TCS’s perspective, this consulting partnership is driven by two key factors:
* The Cloud and AI Revolution: The industry is pivoting from traditional system management to next-generation cloud architectures, agentic workflows, and generative AI. The core challenge is scaling AI from experimental, ad-hoc projects into a fully integrated, enterprise-wide engine.
* On-Demand Expertise: Executing large-scale AI rollouts and migrating to SAP S/4HANA requires highly specialized talent that is both difficult and expensive to recruit in-house. By partnering with TCS, SKF gains instant access to a global innovation ecosystem, drastically accelerating their digital transformation.
* Unlocking Global Agility: By forging a long-term partnership with TCS, SKF is building a resilient, AI-driven operating model that bridges centralized efficiency with local market nuance. Instead of merely adopting new technologies, SKF is embedding artificial intelligence into the very fabric of its operations—from IT systems to physical products—to accelerate growth and elevate the customer experience.
* Transforming the Value Chain: Armed with TCS’s technological expertise, SKF is reshaping its entire value chain. This modernization lays the groundwork for a highly customized IT environment, ultimately empowering the company to sharpen its customer focus and solidify its global market edge.

Print Friendly, PDF & Email

Success Stories

Industriellt

Success Stories

Intressant på PLM TV News

Aktuell ANALYS

Aktuell Analys

Aktuell Analys

3D-printing

Block title