TCS to build team of up to 8,900 AI deployment engineers, explores acquisitions

Tata Consultancy Services (TCS) plans to build a team of up to 8,900 forward-deployed engineers and is evaluating acquisitions in artificial intelligence, cybersecurity, and data security, as the company doubles down on AI-led services despite concerns the technology could disrupt the IT outsourcing industry.

The strategy marks one of TCS's most significant investments in AI services as enterprises increasingly seek help integrating and deploying AI technologies rather than simply adopting foundation models.

"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,"  Reuters reported quoting  TCS CEO K Krithivasan.

Based on TCS's headcount at the end of June, that would amount to roughly 5,900 to 8,900 forward-deployed engineers. Krithivasan did not specify whether the company would recruit externally or retrain existing employees for the roles.

Forward-deployed engineers work closely with customers to implement AI systems, customize models for business requirements, and integrate AI into enterprise environments. The role has gained prominence as enterprises move beyond AI experimentation toward large-scale production deployments.

The move positions TCS alongside AI companies such as OpenAI, Anthropic, and Microsoft, which have expanded hiring for forward-deployed engineers to help enterprise customers deploy AI applications.

Alongside its talent strategy, TCS is also considering acquisitions to strengthen its AI capabilities after historically relying on organic growth.

"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, referring to potential acquisitions in AI, cybersecurity, and data security.

Krithivasan rejected suggestions that generative AI would undermine the traditional IT services model by reducing demand for outsourcing partners.

"What you need is a deep knowledge of the customer environment to make it work," he said. "That is where we differentiate ourselves. This has nothing to do with cost arbitrage. It's essentially because of the talent pool that we have built."

He said enterprises increasingly use multiple AI models and need partners capable of integrating them with existing applications, managing data flows, and tailoring deployments to complex enterprise environments.

Despite its AI investments, TCS reported that annualized AI revenue growth slowed to 13% in the first quarter from 28% in the previous quarter. Krithivasan said he expects AI revenue to grow about 25% quarter over quarter over the long term, although he does not anticipate consistent linear growth.

The company spends about $1 billion annually on talent development and expanding internal AI capabilities, according to Seksaria. The investment covers employee training, targeted hiring, and recruitment of specialists in AI-native technologies as TCS seeks to position itself for the next phase of enterprise AI adoption.