Tata Consultancy Services (TCS) is ramping up its artificial intelligence (AI) strategy by planning to build a team of up to 8,900 Forward-Deployed Engineers (FDEs) and exploring acquisitions in AI and cybersecurity. The move reflects the company’s confidence that AI will create new business opportunities rather than disrupt India’s IT services industry.
TCS Chief Executive Officer K. Krithivasan said the company aims to have 1% to 1.5% of its global workforce serving as Forward-Deployed Engineers. Based on TCS’s workforce at the end of June, this translates to approximately 5,900 to 8,900 AI specialists. These engineers will work directly with clients, helping them deploy AI solutions, integrate AI models into existing systems and accelerate enterprise-wide AI adoption.
The company has not yet disclosed whether these roles will be filled through fresh hiring or by retraining existing employees, but it confirmed that strengthening AI capabilities remains a top priority.
Alongside expanding its workforce, TCS is also evaluating strategic acquisitions in areas such as artificial intelligence, data security and cybersecurity. The move marks a shift in the company’s long-standing strategy of relying primarily on organic growth, signalling a more aggressive approach to strengthening its AI portfolio.
The announcement comes amid growing concerns that AI could reshape India’s $315 billion IT services industry by reducing demand for large software development teams and shortening project delivery timelines. However, Krithivasan dismissed fears that AI would weaken the outsourcing model, arguing that enterprises will continue to require experienced technology partners to successfully integrate AI into complex business environments.
According to the CEO, organisations increasingly use multiple AI models that must work seamlessly with existing enterprise systems, making integration expertise more valuable than ever. He emphasised that TCS’s deep understanding of client environments and its extensive talent pool provide a significant competitive advantage in the AI era.
Chief Financial Officer Samir Seksaria said the company spends nearly $1 billion annually on talent development, with a major focus on AI training, specialised recruitment and upskilling employees in AI-native technologies. The investment is intended to ensure TCS remains competitive as demand for enterprise AI solutions continues to grow globally.
While TCS reported that annualised AI revenue growth moderated to 13% in the first quarter, compared with 28% in the previous quarter, the company expects long-term growth to remain strong as businesses accelerate AI adoption across industries.
With expanded AI capabilities, strategic investments and a stronger client-facing engineering workforce, TCS aims to position itself as a leading global partner for enterprise AI transformation in the years ahead.
Disclaimer: This report has been editorially prepared using publicly available information. While every effort has been made to ensure accuracy, unintentional errors or omissions may occur. Readers are encouraged to verify important information through official sources.
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