TCS plans up to 8,900 forward-deployed AI engineers and eyes AI, cybersecurity acquisitions

Tata Consultancy Services is building a large team of engineers for its AI business. The company plans to hire up to 8,900 forward-deployed engineers to assist clients. TCS is also exploring acquisitions in artificial intelligence and data security areas. This strategic move positions TCS to compete directly with major AI technology firms. The IT giant believes AI will increase the need for its integration and management services.

Tata Consultancy Services plans to build a team of up to 8,900 forward-deployed AI engineers and is looking for acquisition targets in AI and cybersecurity, chief executive K Krithivasan said. The move is India’s largest IT firm answering the question that has hung over the sector since the arrival of agentic AI in enterprise stacks, […] This story continues at The Next Web

Tata Consultancy Services is building a team of up to 8,900 forward-deployed engineers and actively looking at AI acquisitions, betting that artificial intelligence will generate new business for the company rather than eat into its outsourcing model, two TCS executives told Reuters. The move comes months after the IT giant cut around 20,000 jobs, and at a time when investors remain worried about AI's impact on India's $315 billion IT services industry.TCS CEO on the scale of the planTCS CEO K Krithivasan said the company aims to convert between 1 percent and 1.5 percent of its associate base into what it calls forward-deployed engineers, or FDEs. Based on TCS's headcount of 593,798 employees as of June 30, that works out to roughly 5,900 to 8,900 employees. Krithivasan did not specify whether TCS would hire these engineers externally or retrain its existing workforce.What forward-deployed engineers actually doForward-deployed engineers work directly with client organisations to speed up AI adoption and customise AI tools to a company's specific systems and workflows. For instance, if a bank wants to deploy AI to improve customer service, an FDE would study its existing software, data and operating processes before integrating an AI model into that environment. Demand for the role has grown sharply, with OpenAI and Anthropic both setting up dedicated AI services arms built around forward deployment, and Reuters reported that TCS's plan puts it in direct competition with OpenAI, Anthropic and Microsoft for this talent.Betting against the 'AI eats outsourcing' thesisKrithivasan rejected the idea that AI would weaken the outsourcing business model. He said deep familiarity with a client's environment, not cost arbitrage, is what allows TCS to stand apart, describing it as a function of the talent pool the company has built over the years. According to Reuters, he added that companies now use multiple AI models and need partners like TCS to connect those models with existing systems and manage data flows between them.Acquisitions on the table after years of organic growthAlongside the FDE build-out, TCS is evaluating acquisitions in AI, data security and cybersecurity, a shift for a company that had largely avoided acquisitions in favour of organic growth until late 2025. TCS chief financial officer Samir Seksaria told Reuters the company is looking for opportunities that could enhance its strategic positioning. Seksaria said TCS spends about $1 billion annually on talent development and on making AI more accessible internally, with a focus on training and targeted hiring in AI-native roles.AI revenue growth has slowed even as the bet widensDespite the expansion plans, TCS's own numbers show a bumpy road ahead. The company's annualised AI revenue growth slowed to 13 per cent in the first quarter, down from 28 per cent in the previous quarter, according to Reuters. Krithivasan said he wants the AI business to grow around 25 per cent quarter-on-quarter over the long term but does not expect that growth to be linear.

TCS is evaluating acquisitions in AI, data security and cybersecurity; Quarterly annualised AI revenue growth decelerated to 13% from 28% previously.

India's largest IT services company says AI will create new growth opportunities as it expands client-facing engineering teams and explores acquisitions in AI, data security and cybersecurity.

India's largest IT services company says AI will create new growth opportunities as it expands client-facing engineering teams and explores acquisitions in AI, data security and cybersecurity.