TCS is gearing up to enhance its workforce with an emphasis on artificial intelligence (AI) and digital capabilities as part of its strategy to grow its AI business. The firm projects that around 80 per cent of its future employees will possess skills in these domains, which reflects the shifting technological landscape within the industry. This hiring initiative follows reports that AI-related tasks contributed to 10 per cent of TCS’s revenue in the September quarter.

The technology services company added 4,500 new employees during the second quarter, with approximately 25 to 30 per cent of those hires having specialised expertise in AI. Chief Operating Officer Arathi Subramanian indicated that nearly 80 per cent of the newly recruited personnel fell under the category of new-age technology talent. Subramanian expressed confidence that TCS could continue this hiring trend due to the availability of necessary skill sets in the market.

Experienced Professionals Also Valued for AI Roles

While recent graduates may be particularly suited for roles requiring up-to-date technology knowledge, TCS acknowledges that experienced employees can also thrive in the evolving demand for AI skills. Chief Executive Officer and Managing Director K Krithivasan stated that the value of an employee’s prior experience is contingent upon their willingness to adapt and learn new technologies. He highlighted that mid-level engineers willing to expand their knowledge would find themselves in a beneficial position given their understanding of both the technological landscape and the relevant domains.

Krithivasan’s remarks suggest that the need for seasoned professionals, who grasp business requirements and existing technology frameworks, remains significant even as AI proliferates within the realms of software development and IT services. TCS is committed to investing in specialised talent, alongside pursuing mergers, acquisitions, and partnerships to bolster its AI capabilities.

AI as a Catalyst for Profitability

TCS views the development of its AI business as a potential means to enhance profit margins. Krithivasan noted that as the volume of AI contracts increases, the company anticipates an uplift in profitability. Frequently, clients commence with smaller AI projects in specified areas of their operations. Upon witnessing productive outcomes from these initial investments, they often seek to expand AI applications to other segments of their organisations.

Notably, while TCS is careful in categorising contracts strictly as AI deals, Krithivasan remarked that AI has become integral to nearly all the tasks undertaken by the company. In the September quarter, TCS reported a total contract value of $9.6 billion, although specific details concerning revenue derived solely from AI initiatives were not disclosed.

As TCS intensifies its AI hiring efforts, the organisation does so amidst challenges affecting Indian tech professionals in the United States. Recent changes in US immigration policies led to the suspension of the processing of permanent labour certification applications under the PERM programme for numerous technology firms, including TCS, Infosys, Wipro, and HCLTech. This programme is crucial for many employment-based green card applications.

TCS has indicated that this policy shift is not anticipated to disrupt its workforce plans or client relationships, given that its PERM applications have remained in single digits for the previous two years. Concurrently, Zoho founder Sridhar Vembu has encouraged Indian professionals facing uncertainties abroad to return and contribute to the development of India’s technology sector. These developments pose additional questions for India’s IT landscape as firms actively invest in AI, reassess hiring strategies, and manage evolving conditions in international markets.

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