Tata Consultancy Services is building a team of up to 8,900 forward-deployed engineers and is also looking at AI-related acquisitions, according to a Reuters report. The company believes artificial intelligence will create new business opportunities rather than hurt its outsourcing model.
The move comes as investors worry that AI could disrupt India's $315 billion IT services industry. Concerns include reduced demand for engineering teams, shorter project timelines and pressure on prices as clients seek a share of productivity gains.
CEO Outlines Hiring Plan
TCS CEO K Krithivasan said in an interview that the company aims to have 1% to 1.5% of its associates working as forward-deployed engineers. Based on the company's end-June headcount, this would translate to roughly 5,900 to 8,900 employees. Krithivasan reportedly did not specify whether TCS would hire externally or retrain existing staff.
4 July 2026
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Forward-deployed engineers work directly with clients to speed up AI adoption and customise tools for business needs. This role has become a hiring bright spot in an industry otherwise dealing with AI-driven efficiency gains. TCS will now compete for such talent with companies including OpenAI, Anthropic and Microsoft, which have also expanded hiring in this area.
TCS is also evaluating acquisitions in AI, data security and cybersecurity. The company had largely avoided acquisitions for years, relying on organic growth until late 2025. CFO Samir Seksaria said the company is looking for opportunities that can strengthen its strategic position.
Krithivasan rejected concerns that AI would disrupt the outsourcing business model. He said companies still need partners like TCS to integrate and deploy AI systems. "What you need is a deep knowledge of the customer environment to make it work. That is where we differentiate ourselves. This has nothing to do with cost arbitrage. It's essentially because of the talent pool that we have built," he reportedly said.
He added that companies now use multiple AI models and need partners to connect these models with existing systems and manage data flows.
TCS's annualised AI revenue growth slowed to 13% in the first quarter, down from 28% in the previous quarter. Krithivasan said he wants the AI business to grow around 25% quarter-on-quarter over the long term, though he does not expect this growth to be linear.
Seksaria said TCS spends about $1 billion every year on talent development, with focus on training and hiring in AI-native technologies.
