TCS Expands AI Push With Client-Facing Engineers

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Tata Consultancy Services Ltd (TCS) is expanding its artificial intelligence strategy by building a team of up to 8,900 forward-deployed engineers and exploring acquisitions in AI, data security and cybersecurity, as India’s largest IT services company seeks to turn AI disruption into a new growth opportunity.

Speaking to Reuters, TCS Chief Executive Officer K. Krithivasan said the company aims to have between 1% and 1.5% of its workforce serving as forward-deployed engineers (FDEs), or specialists who work directly with clients to deploy AI tools and tailor solutions for enterprise environments.

Based on TCS’s headcount at the end of June, the target translates to about 5,900 to 8,900 engineers. Krithivasan did not say whether the company would hire externally or retrain existing employees for the roles.

The move comes as investors question whether AI could weaken the traditional outsourcing model by shortening software development cycles, improving productivity and reducing demand for large engineering teams.

Forward-deployed engineers have become a key hiring area across the AI industry, with companies including OpenAI, Anthropic and Microsoft using similar roles to help enterprise customers deploy AI systems.

Alongside expanding its client-facing AI workforce, TCS is also evaluating acquisitions to strengthen its capabilities in AI, cybersecurity and data security. Chief Financial Officer Samir Seksaria said TCS is assessing opportunities to improve its long-term strategic position.

“We are looking at where we can find things which will help us enable or enhance our strategic positioning,” Seksaria said.

The acquisition strategy marks a shift for TCS, which has historically relied on organic growth and largely avoided acquisitions until late 2025.

Krithivasan rejected concerns that AI would undermine the outsourcing business, arguing that enterprises will continue to require technology partners capable of integrating AI models into complex business environments.

While TCS continues to expand its AI business, its annualized AI revenue growth slowed to 13% in the first quarter from 28% in the previous quarter. Krithivasan said he expects long-term AI revenue growth of 25% quarter on quarter but cautioned that growth is unlikely to follow a linear path.