Tata Consultancy Services has rejected a UK media report that claimed British retailer Marks and Spencer ended a massive contract worth one billion dollars due to failures linked to a cyberattack. The Indian IT giant called the story misleading and said the contract decision happened well before the security breach.
What the Report Claimed
A recent article in a major UK newspaper suggested that Marks and Spencer dropped TCS after a costly cyberattack earlier this year. The piece accused TCS of mishandling security, leading to the loss of a deal valued at around 300 million pounds.
This claim quickly spread online, raising questions about trust in global IT partnerships. Many readers worried about how such incidents could affect business ties between companies in different countries.
Experts in the tech industry noted that stories like this often highlight growing concerns over data security in outsourced services.
TCS Official Response
TCS issued a strong denial through a filing with stock exchanges. The company explained that the service desk contract with Marks and Spencer went through a normal bidding process that started in January 2025.
This timeline placed the decision months before the cyberattack hit in April 2025. TCS stressed that the two events had no connection at all.
The firm also corrected the reported contract value, saying it was much smaller than claimed. They described it as a minor part of their overall work with the retailer.
In their statement, TCS highlighted their ongoing role as a key partner in other projects. This includes areas like digital transformation and customer support systems.
Details of the Cyberattack
The cyber incident at Marks and Spencer made headlines in spring 2025. Hackers stole customer data, but the company assured that no payment details or passwords were compromised.
Reports linked the attack to a group known as Scattered Spider, known for targeting big firms in various sectors. This breach disrupted operations, forcing some workers to stay home as systems recovered.
- Key impacts included empty shelves in stores due to supply chain issues.
- The attack cost the retailer an estimated 300 million pounds in losses and recovery efforts.
- It was part of a wave of similar hits on UK businesses that year.
Security analysts pointed out that such attacks often exploit weak points in IT support desks. In this case, attackers used tricks to bypass security measures.
Marks and Spencer worked with authorities to investigate. They later confirmed that customer trust remained strong despite the setback.
The event sparked wider discussions on improving cyber defenses in retail.
Impact on Business and Stock
News of the alleged contract loss briefly shook investor confidence. TCS shares saw a small dip before recovering as the denial spread.
| Aspect | Details |
|---|---|
| Stock Change | Up 0.84% to 3,088.90 on the day of clarification |
| Volume Traded | Over 678,000 shares |
| Market Reaction | Quick rebound after official statement |
Analysts believe this episode shows the risks of misinformation in fast-moving news cycles. It also underscores the importance of clear communication from companies.
For TCS, a leader in global IT services, maintaining strong client relationships is crucial. The firm has handled similar challenges before, emerging with its reputation intact.
Broader Context in Cyber Threats
Cyberattacks have surged in 2025, hitting sectors from retail to aviation. Groups like Scattered Spider have targeted multiple firms, using advanced tactics such as deepfakes to fool security.
This year alone, UK retailers faced several breaches, including ones at other major chains. Governments have ramped up warnings and pushed for better protections.
Business leaders now prioritize robust cybersecurity in contracts. For companies like TCS, this means investing more in secure systems and training.
The incident reminds firms to separate routine business decisions from security events. It also highlights how media reports can influence public perception quickly.
Looking Ahead
As cyber threats evolve, partnerships like the one between TCS and Marks and Spencer will need to adapt. Both companies have expressed commitment to their long-term collaboration.
Industry watchers expect more focus on transparent tender processes to avoid similar confusions. This could lead to stricter guidelines for reporting on business deals.
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