Tata Consultancy Services (TCS), one of India's largest IT service providers, is embarking on a significant expansion of its artificial intelligence (AI) capabilities. The company plans to onboard thousands of specialized AI engineers and is actively pursuing acquisitions of AI companies to bolster its strategic position.
New Roles: Forward-Deployed Engineers (FDEs)
TCS intends to establish a new team of "forward-deployed engineers" (FDEs), projected to comprise approximately 1% to 1.5% of its total workforce. Based on its June 2026 employee count, this translates to an estimated 5,900 to 8,900 new or reassigned roles. These FDEs will play a crucial role in enhancing customer AI adoption.
Forward-deployed engineers are AI specialists who work directly with clients to facilitate the implementation, customization, and deployment of AI solutions. Their responsibilities include tailoring AI models to specific business needs, integrating AI into existing workflows, and resolving complex technical challenges. This initiative positions TCS to compete with major tech players like OpenAI, Anthropic, and Microsoft, who are also investing heavily in client-facing AI expertise.
AI as an Opportunity, Not a Threat
The move comes amidst investor concerns that AI could reduce demand for traditional IT services, particularly in India's $315 billion industry. However, TCS CEO K Krithivasan has dismissed these fears, emphasizing that AI is transforming the nature of outsourcing and creating new opportunities for firms capable of integrating and operationalizing AI systems for businesses.
“What you need is a deep knowledge of the customer environment to make it work. That is where we differentiate ourselves. This has nothing to do with cost arbitrage. It’s essentially because of the talent pool that we have built,” Krithivasan stated, highlighting the value of specialized talent.
Strategic AI Acquisitions
Beyond internal hiring and retraining, TCS is also exploring strategic acquisitions of AI startups. CFO Samir Seksaria confirmed the company is looking for opportunities in AI, data security, and cybersecurity that can enhance its strategic positioning. These acquisitions are expected to further strengthen TCS's comprehensive AI offerings and expand its revenue streams.
The company has not yet clarified whether the FDE roles will be filled through new external hires or by retraining and redeploying existing employees into these AI-focused positions.