TCS launches 2 new automotive delivery centers in Germany, 1 engineering center in Romania

TCS Expands European Footprint with New Automotive Delivery Centers in Germany, Engineering Hub in Romania

Bucharest/Munich, June 20, 2025 — Tata Consultancy Services (TCS), India’s largest IT services company, has taken a significant step in strengthening its position in the European automotive and engineering services market by inaugurating two new delivery centers in Germany and launching an engineering hub in Romania.

The move comes as part of TCS’s ongoing strategy to localize operations, be closer to major clients, and invest in innovation in critical manufacturing regions across Europe.

Strategic Expansion into the Automotive Heartland

The newly established delivery centers in Stuttgart and Cologne—Germany’s automotive nerve centers—are set to support several German original equipment manufacturers (OEMs) and Tier-1 suppliers. These facilities will offer services across software-defined vehicles (SDVs), electric vehicle (EV) platforms, connected car ecosystems, and digital manufacturing.

Speaking on the development, V Rajanna, President, Technology and Services, TCS, said,

“Europe, especially Germany, is central to the global automotive transformation. These centers position us strategically to partner with our clients in their innovation and sustainability goals.”

By setting up in proximity to iconic brands like BMW, Mercedes-Benz, Volkswagen, and Bosch, TCS aims to deepen collaboration and co-innovation opportunities.

Engineering Center in Romania: A Talent-Focused Bet

In Romania, TCS opened a state-of-the-art engineering center in Bucharest to complement its digital delivery footprint in Eastern Europe. The facility will focus on embedded software, digital product engineering, cybersecurity, and enterprise IT integration.

Elena Dragomir, Country Head, TCS Romania, remarked:

“Romania offers a highly skilled, multilingual talent pool, especially in engineering disciplines. Our new center will drive innovation and R&D services for clients across Europe.”

Romania has been emerging as a key nearshore destination for tech companies, given its competitive cost base, EU membership, and robust STEM education system.

Analyst Take: Localization & Innovation as Core Pillars

Industry analysts view the expansion as a well-timed strategic investment.

Thomas Neumann, Principal Analyst at Gartner, commented:

“With Europe’s automotive sector undergoing structural change—be it electrification, AI-enabled mobility, or green compliance—TCS is aligning itself with high-value, future-ready areas. Local delivery helps overcome regulatory and cultural barriers while fostering agile innovation.”

Neumann also noted that with companies under pressure to shift supply chains and development closer to home post-COVID and amid geopolitical risks, Indian IT firms like TCS are doubling down on regional delivery.

Market Context: TCS’s European Bet Paying Off

Europe accounts for nearly 30% of TCS's global revenue, making it a vital growth geography. Germany, in particular, has seen the company ramp up hiring, training, and partnership models.

TCS’s strong relationships with leading automotive players, bolstered by its software frameworks for SDVs and experience with Industry 4.0 solutions, make it a preferred transformation partner.

The new engineering center in Romania will also support clients across the aerospace, industrial machinery, and high-tech sectors, as the company increasingly diversifies its engineering offerings beyond traditional IT.

Investor Outlook: Strengthening Long-Term Growth Engines

The announcement comes at a time when TCS shares have been trading in a narrow band on the NSE, reflecting cautious investor sentiment amid broader IT sector headwinds. However, analysts view the European expansion as a sign of long-term confidence.

Suresh Parmar, Equity Strategist at Axis Securities, said:

“TCS’s continued investment in capability-building in key client geographies reaffirms its commitment to non-linear growth. These centers will enable it to win large transformation deals in verticals undergoing rapid digitization.”

He added that localized centers in the EU may help mitigate visa risks and enhance delivery efficiency, key concerns for global IT investors.

Looking Ahead: A Global-Local Delivery Model

With these new launches, TCS now operates over 50 delivery and engineering locations across Europe, including hubs in the UK, Netherlands, France, Hungary, and Poland. The company plans to hire local engineers and collaborate with regional universities in both Germany and Romania to build sustainable talent pipelines.

As the automotive industry evolves rapidly with AI, electrification, and autonomous technologies, TCS’s proactive investments in regional expertise, proximity, and innovation labs could make it a formidable player in the next wave of automotive engineering transformation.