TCS plans expansion of forward-deployed engineers amid AI disruption fears
What's the story
Tata Consultancy Services (TCS) is gearing up to build a massive team of forward-deployed engineers (FDEs). The company plans to have between 5,900 and 8,900 FDEs as part of its strategy, according to Reuters. This comes amid fears that artificial intelligence (AI) could disrupt India's $315 billion IT services industry by reducing demand for engineering teams and shortening project timelines.
CEO's stance
AI won't impact outsourcing: TCS CEO
TCS CEO K Krithivasan, however, is not worried about the potential impact of AI on outsourcing. He said companies still need partners like TCS to integrate and deploy these systems. "What you need is a deep knowledge of the customer environment to make it work. That is where we differentiate ourselves," he said.
Job roles
What are FDEs?
These employees will be given one main job role: forward-deployed engineers (FDEs). FDEs will work closely with clients to speed up the adoption of AI and customize tools according to business needs. This role has become a hiring bright spot in an industry grappling with efficiency gains driven by AI.
Growth strategy
TCS also eyeing acquisitions in AI, cybersecurity
Along with building a team of FDEs, TCS is also looking at acquisitions in the areas of artificial intelligence (AI), data security, and cybersecurity. The company's CFO Samir Seksaria said they are looking for opportunities that could enhance their strategic positioning. This marks a shift from their previous reliance on organic growth to expand into these sectors.
Investment focus
$1B invested annually in talent development
TCS invests about $1 billion annually in talent development and making AI accessible internally. The company's focus is on training, targeted hiring, and niche recruitment in AI-native technologies. Despite a slowdown in annualized AI revenue growth to 13% from 28% last quarter, Krithivasan hopes for a long-term growth rate of about 25% quarter-on-quarter but doesn't expect a linear trajectory.