TCS PLANS UP TO 8,900 AI DEPLOYMENT ENGINEERS AND SEEKS AI ACQUISITIONS

Tata Consultancy Services plans to build a group of up to 8,900 forward-deployed engineers focused on artificial intelligence work with clients, Reuters reported Sunday, citing comments from CEO K. Krithivasan. The planned roles would represent about 1% to 1.5% of TCS's workforce and would be used to help customers integrate and tailor AI tools inside their operations.

Krithivasan told Reuters that TCS has not yet decided whether the roles will be filled through external hiring or by retraining existing employees. That distinction matters because Indian IT firms are under pressure to show that AI will create new kinds of client work rather than only reduce headcount or automate existing outsourcing tasks.

TCS is also looking at acquisitions in artificial intelligence, data security and cybersecurity, according to Reuters. That would mark a more active dealmaking posture for a company that has traditionally leaned heavily on organic growth, internal training and large client relationships rather than frequent major acquisitions.

The move comes as investors question how generative AI will affect India's $315 billion IT services sector. Reuters reported that TCS argues AI creates collaboration opportunities because companies still need help integrating models, data systems, security controls and business processes. The company's position is that deep knowledge of client environments gives firms like TCS a role in making AI systems usable at scale.

The AI push follows a stronger-than-expected quarterly update from TCS. Reuters reported last week that the company's quarterly revenue rose 14% from a year earlier to 722.75 billion rupees, or about $7.58 billion, helped by banking-sector spending and a weaker rupee. TCS also added 9,300 employees in the quarter, its strongest net hiring increase in more than three years.

Reuters reported that TCS's annualized AI revenue reached $2.6 billion, up from $2.3 billion in the previous quarter. A Reuters Breakingviews analysis noted that the growth rate in AI services slowed to 13% quarter over quarter from 28% previously, and said management described AI project deals as less recurring than traditional outsourcing contracts.

That makes the planned forward-deployed engineer group important as both a sales tool and a delivery model. Forward-deployed engineers typically work close to customers, helping translate software or AI products into working systems inside a specific business. For TCS, the strategy appears aimed at moving AI from pilot projects into implementation work that can be billed, repeated and expanded across large clients.

The plan also highlights the changing skills mix inside technology outsourcing. TCS said it continues to invest about $1 billion annually in talent development, according to Reuters. The company is trying to show investors that AI can increase demand for specialized deployment, integration and security work even as automation puts pressure on older service lines.

The strategy places TCS alongside firms such as OpenAI, Anthropic and Microsoft, which have expanded hiring for forward-deployed engineers to help clients put AI tools into production. What remains unconfirmed is how quickly TCS will staff the group, whether the roles will be new hires or reassignments, and which companies it may pursue in the acquisition market.

Fact-check date: July 12, 2026
Article type: News
Sources: Reuters; Reuters Breakingviews; Business Standard; statements from CEO K. Krithivasan and CFO Samir Seksaria as reported by Reuters