Tata Consultancy Services (TCS), India's largest software services firm, plans to build a workforce of up to 8,900 forward-deployed engineers (FDEs) to assist clients in integrating artificial intelligence tools. According to CEO K Krithivasan, this target represents approximately 1% to 1.5% of the company's associates. These engineers embed directly with clients to tailor AI systems to specific business requirements, a strategy intended to counter concerns that AI adoption could reduce demand for traditional IT outsourcing services.

TCS is also actively evaluating potential acquisitions in the fields of AI, data security, and cybersecurity. This marks a strategic shift for the Mumbai-based company, which primarily relied on organic growth until late 2025. CFO Samir Seksaria noted that the firm is targeting acquisitions to enhance its strategic positioning in the market. The company currently allocates approximately $1 billion annually toward internal talent development and making AI tools accessible to its staff.

Despite investor apprehension that AI could lead to price squeezing and reduced demand, Krithivasan maintains that deep knowledge of customer environments remains a key differentiator for TCS. He argued that as companies integrate multiple AI models, they require professional partners to manage complex data flows and system connections. While TCS reported an annualized AI revenue growth rate of 13% for the first quarter, down from 28% in the previous quarter, Krithivasan expressed a long-term goal of achieving 25% quarter-on-quarter growth in the sector.

Tata Consultancy Services (TCS), India's largest software services firm, plans to build a workforce of up to 8,900 forward-deployed engineers (FDEs) to assist clients in integrating artificial intelligence tools. According to CEO K Krithivasan, this target represents approximately 1% to 1.5% of the company's associates. These engineers embed directly with clients to tailor AI systems to specific business requirements, a strategy intended to counter concerns that AI adoption could reduce demand for traditional IT outsourcing services.

TCS is also actively evaluating potential acquisitions in the fields of AI, data security, and cybersecurity. This marks a strategic shift for the Mumbai-based company, which primarily relied on organic growth until late 2025. CFO Samir Seksaria noted that the firm is targeting acquisitions to enhance its strategic positioning in the market. The company currently allocates approximately $1 billion annually toward internal talent development and making AI tools accessible to its staff.

Despite investor apprehension that AI could lead to price squeezing and reduced demand, Krithivasan maintains that deep knowledge of customer environments remains a key differentiator for TCS. He argued that as companies integrate multiple AI models, they require professional partners to manage complex data flows and system connections. While TCS reported an annualized AI revenue growth rate of 13% for the first quarter, down from 28% in the previous quarter, Krithivasan expressed a long-term goal of achieving 25% quarter-on-quarter growth in the sector.