India’s largest IT services company, Tata Consultancy Services (TCS), is accelerating its artificial intelligence (AI) strategy by planning to build a dedicated team of up to 8,900 AI deployment engineers. Alongside expanding its AI workforce, the company is also exploring acquisitions in artificial intelligence, cybersecurity, and data security to strengthen its technology capabilities and remain competitive in the rapidly evolving AI landscape.
The move highlights TCS’s confidence that AI will generate new business opportunities rather than replace the traditional IT outsourcing model.
TCS Plans Major Expansion of AI Deployment Engineers
TCS Chief Executive Officer K. Krithivasan said the company aims to have 1% to 1.5% of its global workforce serving as forward-deployed engineers (FDEs)—specialists who work directly with clients to help implement AI solutions.
Based on TCS’s workforce at the end of June, this translates to approximately 5,900 to 8,900 AI deployment engineers.
The company has not yet confirmed whether these positions will be filled through new hiring or by upskilling existing employees.
What Do Forward-Deployed Engineers Do?
Forward-deployed engineers play a key role in helping businesses adopt artificial intelligence effectively. Instead of working remotely, these professionals collaborate closely with clients to understand their operations, integrate AI tools into existing systems, and customise solutions for specific business requirements.
As organisations increase AI adoption, demand for these specialists continues to grow across the technology industry.
TCS Competes with Global AI Leaders
By expanding its forward-deployed engineering team, TCS is positioning itself alongside major AI companies such as OpenAI, Anthropic, and Microsoft, all of which have increased hiring in similar client-facing AI implementation roles.
The growing demand for AI integration services reflects the increasing need for businesses to deploy generative AI solutions efficiently while ensuring compatibility with existing infrastructure.
TCS Evaluates AI and Cybersecurity Acquisitions
In addition to expanding its workforce, TCS is actively evaluating acquisition opportunities in:
- Artificial intelligence
- Data security
- Cybersecurity
Chief Financial Officer Samir Seksaria said the company is looking for businesses that can strengthen its long-term strategic position and enhance its AI capabilities.
Historically, TCS relied primarily on organic growth and made relatively few acquisitions, but the company has become more open to strategic investments as AI transforms the technology sector.
TCS Believes AI Will Strengthen IT Services
While many investors worry that AI could reduce demand for traditional IT outsourcing by automating tasks, TCS believes the opposite.
Krithivasan said businesses still require experienced technology partners to successfully integrate AI into complex enterprise environments.
According to him, successful AI deployment depends not only on the technology itself but also on deep knowledge of each client’s business processes, existing systems, and operational requirements. TCS views this expertise as one of its biggest competitive advantages.
The company also noted that many enterprises now use multiple AI models simultaneously, creating greater demand for technology partners capable of connecting these systems, managing data flows, and ensuring smooth implementation.
AI Revenue Growth Slows, but Long-Term Outlook Remains Positive
Although TCS remains optimistic about AI-driven growth, its AI business experienced slower expansion during the latest quarter.
Annualised AI revenue growth declined to 13% in the first quarter, compared with 28% in the previous quarter. Despite the slowdown, Krithivasan said the company continues to target approximately 25% quarter-on-quarter growth over the long term, while acknowledging that growth is unlikely to follow a consistent pattern every quarter.
TCS Invests $1 Billion Annually in AI Talent
To prepare its workforce for the future, TCS invests nearly $1 billion every year in employee development and AI adoption initiatives.
The investment focuses on:
- AI training and certification
- Upskilling existing employees
- Hiring specialised AI professionals
- Recruiting experts in AI-native technologies
- Expanding internal AI capabilities
These initiatives are designed to ensure that TCS remains competitive as enterprises increasingly adopt artificial intelligence across industries.
Conclusion
TCS is significantly strengthening its AI strategy by planning to build a dedicated team of up to 8,900 AI deployment engineers while exploring strategic acquisitions in AI, cybersecurity, and data security. As businesses continue to invest in artificial intelligence, TCS believes its expertise in enterprise integration and client collaboration will help drive future growth, reinforcing its position as a global leader in IT services despite growing competition in the AI era.