The top bosses at Tata Consultancy Services believes artificial intelligence will have not erode IT service revenues and will instead project a brighter future ahead, powered by a bigger order book and expanding opportunities.
Speaking to NDTV Profit, TCS CEO K Krithivasan addressed the existential questions surrounding AI in the IT sector, adding that the fundamental role of system integrators remain unchanged while firmly rejecting the idea of an AI-induced inflation in billing or widespread job elimination.
"Revenue model in terms of how you price your services can change, but I'm not expecting a shrinkage in the overall revenue or on the trajectory of revenue as well," Krithivasan said.
The TCS top boss added that the true potential of AI goes far beyond simple cost-cutting. "AI's value is not in reducing 15, 10% on the IT budget. AI's value comes when you are able to improve your customer's experience, bring new product, new service," he said.
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Meanwhile, Chief Strategy Officer Aarti Subramanian highlighted a significant jump in AI-specific growth over a short period. "I think if you see our AI revenues from last quarter to this quarter annualised has increased from $1.8 billion to $2.3 billion, which is a huge positive," she noted.
TCS has indeed posted strong order win momentum in the fourth quarter, whereas the annualised AI figures have been equally impressive.
Despite global macroeconomic challenges and geopolitical tensions, TCS reported exceptional deal momentum. The company signed three mega deals and added four new $100 million clients this quarter alone.
"While there could be some macroeconomic overhang for a short period of time, we are very positive about the future," Krithivasan said, pointing to the $12 billion quarterly and $40 billion annual order book.
Looking ahead, TCS is also laying the groundwork for its massive 1-gigawatt data center infrastructure. While acknowledging it is a long-term structural play, Krithivasan expects it to be a key future growth engine.
"We may start maybe start seeing the revenue from sometime in CY28 because when it becomes operational, but the discussions are very, very robust and we're very happy with the way things are progressing," he concluded.
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