TCS has started a new AI and services transformation unit to focus on building AI solutions for different industries. This is an important step for the company as it looks to improve its technology and offer smarter services to clients.
Amit Kapur, a senior TCS executive who used to lead the company’s UK and Ireland operations, will head this new unit starting in September. With his experience, Kapur will help TCS grow its AI capabilities and develop new strategies to meet client needs.
TCS is the first major Indian IT company to launch a dedicated AI business unit. This move is similar to global companies like Accenture that are also focusing heavily on AI.
The timing is critical. TCS recently announced it will reduce its workforce by 12,000 employees due to slow client spending and challenges in the global economy. The outsourcing industry, worth US$283 billion, faces disruption from AI technologies that could change how services are delivered.
Indian IT companies, including TCS, are increasingly investing in AI to boost growth. By focusing on AI-led services, TCS aims to create new revenue streams and provide better, more efficient solutions to its clients.
This strategy helps TCS stay competitive as the IT industry changes. Companies that successfully integrate AI into their services can lead the market and attract more clients.
TCS share price has delivered mixed returns recently. It delivered marginal gains over the past 1 month and has dropped by over 30% in 1 year. However, it has given 40% returns over the past 5 years. This new AI focus could help improve TCS’s future performance.
Read more: TCS Layoffs History: From Small Exits to 12,000 Job Cuts.
TCS’s launch of a dedicated AI unit is a smart step to strengthen its position in the fast-changing IT world. With new leadership and a clear focus on AI, the company hopes to innovate, overcome current challenges, and open new paths for growth. This move might also inspire other IT firms in India to follow suit and accelerate AI adoption.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Aug 28, 2025, 11:41 AM IST
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