Tata Consultancy Services Ltd. announced on Thursday a pivot towards artificial intelligence, unveiling major investments aimed at transforming the company into the world's largest AI-led IT services provider.
The move came as the IT giant reported higher second-quarter revenue but lower profit amid global macroeconomic headwinds.
India's largest software exporter plans to set up a new business entity dedicated to building world-class AI infrastructure, including a 1 GW AI data centre in India, the company said in a statement on Thursday.
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"We are on a journey to become the world's largest AI-led technology services company," Chief Executive Officer K Krithivasan said. "Our journey is anchored in bold transformation across talent, infrastructure, ecosystem partnerships and customer value."
"The investments, including building a world-class AI infrastructure business, demonstrate our commitment to this transformation," Krithivasan added.
TCS Acquires ListEngage To Strengthen AI Capabilities
As part of its AI strategy, TCS has acquired 100% of US-based ListEngage, a full-stack Salesforce partner, for $72.8 million in cash. The deal enhances TCS's "Agentic AI" capabilities and deepens its enterprise solutions presence in the US.
The acquisition adds 100 Salesforce-certified professionals to TCS' team and brings ListEngage's 400 Salesforce certifications into the fold. Founded in 2018, ListEngage helps clients with digital-marketing transformation using Salesforce platforms and AI advisory services, and reported FY24 revenue of $24.3 million.
"This is more than an acquisition—it's a growth platform," said ListEngage CEO Altaf Shaikh. "Together, we will set a new benchmark for how enterprises unlock the full value of Salesforce. I'm particularly excited about the AI opportunities ahead."
The deal gives ListEngage access to TCS' global customer base while expanding TCS' foothold in AI, cloud services, cybersecurity, digital engineering and enterprise solutions.
TCS' AI transformation agenda includes:
Establishing a new business unit focused on AI infrastructure.
Setting up a 1 GW AI data centre in India.
Expanding its AI-first culture through reskilling and in-house innovation.
Integrating AI across client transformation deals in BFSI, life sciences, and other verticals.
The company also recently secured a €550 million ($644 million) deal with Scandinavian insurer Tryg to manage IT operations using AI, cloud, and digital tools over seven years. TCS' contract value of $10 billion in recent quarters underscores the growing AI component in its deal pipeline.
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