Tata Consultancy Services (TCS) is stepping up its artificial intelligence strategy by planning to build a dedicated team of up to 8,900 forward-deployed engineers (FDEs) while also exploring acquisitions in AI, data security and cybersecurity. The initiatives reflect the company’s view that AI will create new business opportunities for IT services rather than diminish demand for outsourcing.
The planned FDE workforce would account for around 1% to 1.5% of TCS’s global headcount. These engineers will work directly with customers to deploy, customize and integrate AI solutions into enterprise environments. According to the company, the role is intended to bridge the gap between AI technologies and clients’ operational needs by ensuring successful implementation of AI systems.
Speaking to Reuters, TCS Chief Executive Officer K. Krithivasan said the company has not yet decided whether the new AI-focused positions will be filled through external hiring or by retraining existing employees. TCS already invests about $1 billion annually in talent development, and the company said AI-native skills remain a major focus of its workforce strategy.
The expansion comes as enterprises worldwide accelerate the adoption of generative AI and agentic AI technologies, creating demand for professionals who can help organizations integrate these capabilities into business processes. Global technology companies, including OpenAI, Anthropic and Microsoft, have also increased hiring for similar customer-facing AI engineering roles, often referred to as forward-deployed engineers.
Alongside expanding its AI deployment capabilities, TCS is evaluating acquisition opportunities in AI, cybersecurity and data security. The move marks a departure from the company’s long-standing preference for organic growth. While TCS has historically relied on internal capability building, the company now sees targeted acquisitions as a way to strengthen its AI offerings and address evolving customer requirements.
Krithivasan said, “We are looking at acquisitions in AI, data security and cybersecurity.”
On the company’s AI strategy, he added, “AI is not going to reduce the need for outsourcing. AI deployment requires a deep understanding of customers’ environments, and that is where companies like TCS have an advantage.”
Although TCS reported that the annualised revenue run rate from AI-related services has continued to grow, executives acknowledged that quarter-on-quarter growth can fluctuate because AI projects tend to be deal-driven rather than recurring in nature. Nevertheless, the company expects AI revenues to maintain a long-term quarterly growth trajectory of around 25%.
The latest plans underscore TCS’s broader strategy of positioning AI as a growth catalyst while expanding its capabilities through specialized talent and selective acquisitions. As enterprises move from experimenting with AI to large-scale deployment, the company is seeking to strengthen its role in implementing and managing AI solutions across customer environments.
