TCS offers outcome-based AI contracts, will migrate to fixed-price
Tata Consultancy Services (TCS) is switching things up by offering outcome-based contracts for its AI services. Basically, clients only pay when they see real business results.
Plus, TCS plans to pass on up to 15% in cost savings thanks to AI. Over time, these deals will shift into fixed-price agreements as the benefits become clearer.
TCS June $7.62B, AI annualized $2.6B
TCS's AI lab is a big part of this move, helping clients scale their solutions efficiently.
The company just posted strong revenue numbers for June ($7.62 billion), and its annualized AI revenue jumped to $2.6 billion.
While global uncertainties are making demand a bit tricky to predict, CEO K Krithivasan says TCS is well-equipped to guide clients on managing costs of big AI models like ChatGPT.
Investors seem happy: TCS shares opened 4% higher today compared with the Sensex's 1.5% rise.