TCS CEO Rejects ‘One-Trick Pony’ Label Amid Global Slowdown and AI Strategy

Tata Consultancy Services (TCS) CEO K Krithivasan has dismissed criticism, labelling the firm as a "one-trick pony", asserting the company’s revenue outlook is impacted more by global economic challenges than overdependence on any one client, like BSNL, as per Economic Times. He highlighted TCS’s advances in AI integration and service line restructuring as part of its future growth strategy.

TCS Diversification Beyond BSNL, Focus on AI and Transformation

Replying to questions around the software firm's $1 billion BSNL deal, Krithivasan pointed out that this constitutes just a fraction of TCS’s $30 billion annual revenue. He argued it’s unjust to tag TCS as overly dependent on a single contract, stressing the company's expansive global client base and service portfolio. The CEO emphasised that current revenue softness stems from global uncertainties hurting sectors such as airlines, auto and retail.

Adapting to Economic Uncertainty and Reshaping Service Lines

TCS has realigned its operations by reorganising service lines and deploying artificial intelligence-driven solutions. With a new Chief Operating Officer, Aarthi Subramanian, leading these transformations, the firm is focusing on stitching together multi-service solutions while enhancing internal capabilities. Krithivasan believes this integrated approach will enable the company to respond faster to evolving client needs.

Navigating Emerging Competition and AI-Driven Disruption

While acknowledging rising threats from agile new entrants offering cost-efficient models, Krithivasan maintained that TCS's deep contextual understanding and longstanding client relationships provide a competitive advantage. He noted that digital transformation, particularly AI adoption, still lacks widespread ROI delivery, presenting both opportunity and challenge.

Read More: TCS Salary Hike 2025: No Decision Yet Amid Economic Uncertainty!

Future Outlook: Gradual Evolution, Not Instant Disruption

The CEO acknowledged that structural shifts like automated code generation and AI agents, especially in BPO processes, are reshaping the IT services model. However, he believes such transitions will be evolutionary. The pace of new technology adoption depends on enterprise readiness, requiring validation and human oversight, ensuring roles are redefined rather than eliminated.

Tata Consultancy Services Share Price Performance

On July 14, 2025, Tata Consultancy Services share price opened at ₹3,266.00 on NSE, near the previous close of ₹3,266.00. During the day, it surged to ₹3,272.00 and dipped to ₹3,200.00. The stock closed at ₹3,222.70 by the end of the day. The stock registered a moderate decline of 1.33%.

Over the past week, it has declined by 5.39%, over the past month, it has declined by 7.83%, and over the past 3 months, it has moved up by 0.10%.

Conclusion

TCS is navigating a complex macroeconomic backdrop with strategic resilience, leveraging AI and organisational restructuring to drive growth. The BSNL deal is merely a piece of a broader business strategy, and TCS’s model is far from being single-threaded. Ongoing evolution within the IT and BPO spaces points to new opportunities for sustained growth and relevance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.

Investments in securities are subject to market risks. Read all related documents carefully before investing.