TCS To Hire 8,900 AI Engineers, Eyes Acquisitions

Tata Consultancy Services (TCS) is set to build a team of up to 8,900 forward-deployed engineers, who will work directly with client organisations to speed up AI adoption and customise AI tools. This move comes as the company aims to generate new business from artificial intelligence, rather than seeing it as a threat to its outsourcing model.

According to TCS CEO K Krithivasan, the company plans to convert between 1 percent and 1.5 percent of its associate base into forward-deployed engineers. Based on TCS's current headcount of 593,798 employees, this works out to roughly 5,900 to 8,900 employees. However, Krithivasan did not specify whether TCS would hire these engineers externally or retrain its existing workforce.

Forward-deployed engineers play a crucial role in helping client organisations adopt AI technology. They work directly with clients to customise AI tools to their 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.

The demand for forward-deployed engineers has grown sharply, with companies like OpenAI and Anthropic setting up dedicated AI services arms built around forward deployment. TCS's plan puts it in direct competition with these companies, as well as Microsoft, for this talent.

Krithivasan rejected the idea that AI would weaken the outsourcing business model, stating that deep familiarity with a client's environment, not cost arbitrage, is what allows TCS to stand apart. 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.

In addition to building its team of forward-deployed engineers, TCS is also evaluating acquisitions in AI, data security, and cybersecurity. This marks a shift for the company, which had largely avoided acquisitions in favour of organic growth until late 2025. TCS chief financial officer Samir Seksaria stated that the company is looking for opportunities that could enhance its strategic positioning.

TCS spends about $1 billion annually on talent development and making AI more accessible internally, with a focus on training and targeted hiring in AI-native roles. Despite the expansion plans, TCS's own numbers show a bumpy road ahead, with the company's annualised AI revenue growth slowing to 13 percent in the first quarter, down from 28 percent in the previous quarter.

The Indian IT services industry, worth $315 billion, has been facing concerns about the impact of AI on its business model. However, TCS is betting that AI will generate new business for the company, rather than eating into its outsourcing model. The company's plans to build a team of forward-deployed engineers and evaluate acquisitions in AI and cybersecurity are a testament to its commitment to this vision.

In the context of the Indian IT services industry, TCS's move is significant. The company is taking a proactive approach to embracing AI technology and positioning itself for future growth. As the industry continues to evolve, it will be interesting to see how TCS's plans play out and what impact they will have on the company's business.

Overall, TCS's plans to build a team of forward-deployed engineers and evaluate acquisitions in AI and cybersecurity demonstrate the company's commitment to innovation and growth. As the Indian IT services industry continues to navigate the challenges and opportunities presented by AI, TCS is well-positioned to remain a leader in the field.

The significance of TCS's plans extends beyond the company itself, as it has implications for the broader Indian IT services industry. As AI technology continues to evolve and become more prevalent, companies like TCS will play a crucial role in helping organisations adopt and integrate this technology. The success of TCS's plans will likely have a ripple effect throughout the industry, as other companies take note of the company's approach and adapt their own strategies accordingly.

In conclusion, TCS's plans to build a team of forward-deployed engineers and evaluate acquisitions in AI and cybersecurity are a significant development in the Indian IT services industry. The company's commitment to innovation and growth is evident, and its approach to embracing AI technology is likely to have a lasting impact on the industry as a whole.