- TCS plans to build a team of up to 8,900 forward-deployed engineers for AI adoption
- Forward-deployed engineers will be 1% to 1.5% of TCS's workforce by headcount
- TCS is evaluating acquisitions to boost AI, data security, and cybersecurity capabilities
Tata Consultancy Services Ltd. is building a specialised team of up to 8,900 forward-deployed engineers and evaluating acquisitions in artificial intelligence, data security and cybersecurity, as India's largest IT services company doubles down on AI-led growth despite fears that the technology could disrupt the outsourcing industry.
Speaking to Reuters, TCS Chief Executive Officer K Krithivasan said the company plans to have 1% to 1.5% of its workforce serve as forward-deployed engineers (FDEs), professionals who work closely with clients to accelerate AI adoption and tailor AI solutions to business needs.
Based on TCS' end-June headcount, that translates to roughly 5,900 to 8,900 employees. Krithivasan did not specify whether the company would recruit externally or retrain existing employees for these roles.
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The move comes as investors worry that generative AI could reduce demand for large engineering teams, shorten project timelines and put pressure on pricing across India's $315 billion IT services industry.
"We would be ... ensuring that we have as many as 1% to 1.5% of our associates who could be what you would call FDEs," Krithivasan told Reuters.
Forward-deployed engineering has emerged as one of the fastest-growing AI roles globally, with companies such as OpenAI, Anthropic and Microsoft expanding similar teams to help enterprise customers deploy AI technologies.
TCS is also considering acquisitions after largely relying on organic growth for years.
"We are looking at where we can find things which will help us enable or enhance our strategic positioning," Chief Financial Officer Samir Seksaria told Reuters.
Krithivasan dismissed concerns that AI would weaken the traditional outsourcing model, arguing that enterprises will continue to rely on companies such as TCS to integrate AI models with existing technology infrastructure.
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He added that enterprises increasingly use multiple AI models, creating demand for partners that can integrate those systems and manage complex data flows.
While TCS continues to expand its AI capabilities, growth in its AI business has moderated. Annualised AI revenue growth slowed to 13% in the June quarter from 28% in the previous quarter.
Krithivasan said the company aims for AI revenue to grow around 25% quarter-on-quarter over the long term, though he cautioned that the trajectory is unlikely to be linear. According to the report, TCS invests about $1 billion annually in talent development and making AI accessible across the organisation through training, targeted hiring and recruitment in AI-native technologies.
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