Tata Consultancy Services (TCS) is stepping up its artificial intelligence (AI) strategy by planning to build a team of up to 8,900 forward-deployed engineers (FDEs) while also evaluating acquisitions in AI, data security, and cybersecurity.
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The move signals the IT giant’s confidence that AI will create new business opportunities rather than diminish the traditional IT services model.
The announcement comes at a time when investors are concerned that AI could disrupt India’s $315 billion IT services industry by reducing demand for large engineering teams, shortening project timelines, and putting pressure on pricing.
TCS to Build a Dedicated AI Deployment Team
Speaking to Reuters, TCS CEO K Krithivasan said the company aims to have 1% to 1.5% of its workforce serve as forward-deployed engineers. Based on TCS’ workforce at the end of June, this translates to approximately 5,900 to 8,900 employees.
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Krithivasan did not specify whether these positions would be filled through external hiring or by reskilling existing employees.
Forward-deployed engineers work closely with clients to accelerate AI adoption, customise AI solutions, and integrate them into enterprise environments. The role has become increasingly important as businesses seek practical AI implementation rather than standalone AI tools.
AI Acquisitions Back on the Agenda
TCS is also exploring acquisitions in AI, cybersecurity, and data security to strengthen its strategic capabilities.
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Chief Financial Officer Samir Seksaria said the company is looking for opportunities that can enhance its long-term positioning in emerging technologies. The acquisition strategy marks a notable shift for TCS, which has traditionally relied on organic growth and made few acquisitions over the years.
AI Will Strengthen, Not Replace, IT Services
Krithivasan rejected the idea that AI will weaken the outsourcing industry, arguing that enterprises still need experienced technology partners to successfully deploy AI solutions.
He said organizations require deep knowledge of their existing technology environments, business processes, and data ecosystems to implement AI effectively. According to him, TCS’ strength lies in its large talent pool and long-standing customer relationships rather than cost arbitrage alone.
As enterprises increasingly use multiple AI models, service providers like TCS will play a critical role in integrating AI systems with existing enterprise applications and managing complex data flows.
Continued Investment in AI Talent
Despite reporting that annualised AI revenue growth slowed to 13% in the first quarter, down from 28% in the previous quarter, TCS remains optimistic about the long-term opportunity. Krithivasan said he expects AI business growth to average around 25% quarter-on-quarter over time, though not in a linear fashion.
To support its AI ambitions, TCS invests nearly $1 billion annually in talent development and AI enablement. The investment focuses on employee training, targeted hiring, and building expertise in AI-native technologies, according to Seksaria.
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