India-based IT firm Tata Consultancy Services plans to field up to 8,900 forward-deployed engineers and is scouting for acquisitions in artificial intelligence, data security, and cybersecurity, two executives told Reuters, as per a recent report.
CEO K Krithivasan said in an interview with Reuters that the forward-deployed engineer group would represent 1% to 1.5% of the company’s workforce, based on its end-June headcount. He did not say whether the roles would be filled externally or through reskilling existing staff. These engineers embed with clients to speed up AI adoption and customise tools, a role also being expanded by firms like OpenAI, Anthropic, and Microsoft.
Krithivasan rejected the idea that AI would undermine outsourcing. “What you need is a deep knowledge of the customer environment to make it work. That is where we differentiate ourselves. This has nothing to do with cost arbitrage,” he said, as per the report.
TCS is also considering acquisitions after years of relying largely on organic growth, says Reuters. “We are looking at where we can find things which will help us enable or enhance our strategic positioning,” CFO Samir Seksaria said.
The AI and acquisition push comes as the company’s annualised AI revenue growth slowed to 13% in the June quarter from 28% in the previous quarter. Krithivasan said he would like the business to grow about 25% quarter-on-quarter over the long term, but does not expect a linear trajectory. TCS spends around $1 billion a year on talent development and internal AI accessibility, Seksaria added, according to the report.