The Indian IT sector has been significantly affected by the rise of artificial intelligence, particularly major players like TCS, Wipro, and Infosys. As new AI technologies from companies like Anthropic and OpenAI emerge, these firms are experiencing considerable volatility in their stock prices. Reports suggest that fears of a SaaSpocalypse, or widespread disruption in software as a service, have led to widespread layoffs in the industry, including an earlier downsizing at TCS that involved nearly 20,000 employees.

Despite this challenging backdrop, TCS remains optimistic about the future of AI, asserting that it will foster new business opportunities rather than diminish the outsourcing model. The company plans to hire between 5,900 and 8,900 forward deployed engineers (FDEs) to help facilitate these opportunities. According to TCS CEO K Krithivasan, the goal is to have about 1 per cent to 1.5 per cent of their workforce positioned as FDEs.

As of June 30, 2026, TCS employs 593,798 individuals globally, making this hiring initiative a significant step in adapting to the changing landscape of the IT sector.

Role and Function of Forward Deployed Engineers

Forward deployed engineers (FDEs) are tasked with working directly alongside clients to accelerate the adoption of AI tools and tailor these technologies to meet specific business needs. This role includes integrating AI into existing systems, particularly in sectors like banking, where improving customer service through AI has become increasingly vital.

For instance, if a banking institution aims to leverage AI for enhanced customer service, an FDE would collaborate with the bank to assess its software, data, and operational processes. This detailed understanding is essential for effectively integrating AI solutions into the existing technological framework of the organisation.

Recently, the demand for FDEs has surged as companies like OpenAI and Anthropic establish services focused entirely on aiding businesses in adopting AI technologies. In the context of compensation, job listings from tech giants like Google Cloud indicate that base salaries for FDEs can range from $153,000 (approximately Rs 1.46 crore) to $222,000 (approximately Rs 2.12 crore) in the US market, while OpenAI offers packages between $198,000 (approximately Rs 1.89 crore) and $335,000 (approximately Rs 3.2 crore).

A TCS Strategy Amid Industry Challenges

K Krithivasan has expressed that the prevailing narrative that AI will affect the outsourcing business model is misguided. He emphasised that organizations will still require partners, like TCS, to effectively deploy and integrate AI systems. This specialised knowledge of customer environments differentiates TCS from competitors, and the firm boasts a strong talent pool built through years of experience.

Furthermore, TCS has solidified its commitment to AI integration through a partnership with OpenAI, allowing them to utilise ChatGPT Enterprise for internal operations. This strategic move is indicative of the company’s intent to stay at the forefront of technology-driven solutions.

In alignment with this optimism, several industry leaders, including Infosys Chairman Nandan Nilekani, have voiced confidence in the potential of Indian IT firms to adapt in the AI landscape. Nilekani stated that AI is likely to amplify businesses that are willing to innovate and adapt swiftly.

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