Despite recently laying off nearly 20,000 employees, Tata Consultancy Services (TCS) is making a major push into artificial intelligence, announcing plans to build a large team of Forward Deployed Engineers (FDEs) to help clients adopt AI solutions at scale.
The move reflects the Indian IT giant's belief that AI will create new business opportunities rather than disrupt the outsourcing industry, even as concerns over automation continue to reshape the global technology sector.
TCS to build a dedicated AI deployment team
Speaking to Reuters, TCS CEO K. Krithivasan said the company plans to have between 5,900 and 8,900 Forward Deployed Engineers, representing roughly 1% to 1.5% of its workforce.
"We would be ensuring that we have as many as 1 per cent to 1.5 per cent of our associates who could be what you could call FDEs," Krithivasan said.
As of June 30, 2026, TCS employed 593,798 people worldwide, making it one of the largest IT services companies globally.
Alongside expanding its AI workforce, TCS is also exploring acquisitions in artificial intelligence, cybersecurity and data security to strengthen its capabilities.
What do Forward Deployed Engineers do?
Forward Deployed Engineers work directly with enterprise customers, helping them integrate AI tools into their existing technology infrastructure.
For example, if a bank wants to deploy AI-powered customer service, an FDE studies the bank's software systems, business processes and data architecture before implementing and fine-tuning AI models to fit that environment.
The role has gained significant attention in recent months as companies like OpenAI and Anthropic have built dedicated AI deployment teams to help businesses adopt generative AI technologies.
AI demand is creating a new hiring trend
The growing importance of FDEs is reflected in the salaries offered by leading AI companies.
Recent US job listings from Google Cloud show base salaries ranging from $153,000 to $222,000 (approximately ₹1.46 crore to ₹2.12 crore) for Forward Deployed Engineers.
OpenAI offers even higher compensation, with similar US roles carrying base salaries between $198,000 and $335,000 (around ₹1.89 crore to ₹3.2 crore).
The rising demand could work in favour of Indian IT firms, which have decades of experience integrating enterprise software and managing large-scale digital transformation projects.
TCS says AI will strengthen outsourcing
Krithivasan dismissed suggestions that AI will reduce the need for outsourcing partners.
According to him, enterprises will continue relying on companies like TCS because successful AI implementation requires a deep understanding of each client's technology landscape rather than simply deploying AI models.
"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," he said.
The company already has an agreement with OpenAI to deploy ChatGPT Enterprise internally across its operations.
Indian IT adapts to the AI era
TCS is not alone in repositioning itself for the AI boom. Rivals including Infosys and Wipro have also reduced headcount while increasing investments in AI-focused services.
Infosys Chairman Nandan Nilekani recently expressed confidence that Indian IT companies will continue to thrive in the AI era.
"AI will not replace companies like ours. It will amplify those who move with purpose and adapt with speed," he said.
AI business remains a long-term priority
While TCS continues investing heavily in AI, growth in its AI-related business has moderated.
The company's annualised AI revenue growth slowed to 13% in the first quarter, down from 28% in the previous quarter. However, Krithivasan said he expects AI revenue to grow by around 25% quarter-on-quarter over the long term, though not in a straight line.
To support its AI ambitions, TCS spends roughly $1 billion annually on employee development, AI training, targeted hiring and building expertise in AI-native technologies.
With its latest hiring plans and continued investment in AI capabilities, TCS is betting that helping enterprises deploy artificial intelligence, not replacing workers, will be the next major growth engine for India's largest IT services company.
