TCS’s AI-skilled workforce doubles to 1.6 lakh; 18,500 new employees in the second quarter, with a focus on skills that are ready for the future

India’s largest IT services company, Tata Consultancy Services (TCS), is making a major pivot towards artificial intelligence (AI) and digital infrastructure, with plans to invest $5 billion to $6 billion in building data centers and AI capabilities over the next few years. The company aims to transform itself into the world’s largest AI-led technology services company, said Samir Seksaria, Chief Financial Officer (CFO) of TCS.

TCS is reskilling its workforce for the next phase of technology, with a focus on highly skilled, intensive digital roles and has already doubled its AI-skilled workforce to 1.6 lakh.

In a conversation with ET Now, Seksaria and Sudeep Kunnumal, Chief Human Resources Officer (CHRO), shared insights into the company’s AI transition strategy, investments and workforce transformation plans.

TCS will set up an AI data center capacity of 1 gigawatt

As part of its AI expansion, TCS plans to create one gigawatt (GW) of data center capacity in the coming years – a major step towards digital infrastructure that will support AI training, cloud computing and enterprise services.

“We will start with a 150-megawatt phase requiring an investment of about $1 billion, which will become operational in the next 14 to 18 months,” Seksaria said. “The capacity will be gradually scaled up to one gigawatt over time.”

The total investment, estimated at between $5 billion and $6 billion, will be structured through a combination of equity and debt, with potential participation from strategic equity partners. “It will start as a wholly owned subsidiary and over time we may bring in a strategic partner to scale the business,” Seksaria confirmed. The planned data centers will focus on AI and sovereign cloud infrastructure, and will serve TCS’s enterprise customers as well as other customers. hyperscalers.

Five pillars of TCS’s AI transformation

TCS’s transition to an AI-driven model is guided by what management calls the company’s ‘five pillars of transformation’. These pillars will shape its investments, personnel strategy and customer engagement in the coming years:

Internal transformation:
TCS aims to integrate AI into every internal function – from operations to decision-making – to improve efficiency and productivity. Employees gain access to AI tools and platforms to drive innovation.

Redefining services:
The company has created a new AI Business Unit, which focuses on talent acquisition, reskilling and a ‘human + AI’ service delivery model.

Ready for the future:

TCS is reskilling its workforce for the next phase of technology, focusing on highly skilled, intensive digital roles to stay ahead of global technology trends.

AI for customers:
TCS works closely with customers through ‘AI Innovation Days’ and short-cycle delivery models: 8- to 12-week AI projects that demonstrate tangible business results before scaling.

Ecosystem play and partnerships:
In addition to its internal efforts, TCS is deepening partnerships with niche AI ​​players, hyperscalers and enterprise technology companies. The company has already announced an acquisition in the Salesforce domain and is exploring further inorganic growth opportunities.

Transform into an AI-first technology company

TCS’s move to become an AI-first technology company is not an overnight shift, Seksaria points out.

“This is a journey. We have been investing in AI, cloud and data for years, but now we are accelerating to the next level,” he said. “There are short-term steps such as restructuring and talent readiness, and longer-term initiatives such as ecosystem expansion.”

He added that every customer project will increasingly integrate AI – whether it’s improving productivity, accelerating delivery or improving the end-user experience.

The AI ​​workforce doubles to 1.6 lakh employees

The company’s HR transformation is as important as the infrastructure and business model changes.

According to CHRO Sudeep Kunnumal, TCS’ talent base in AI and machine learning (ML) has more than doubled in the past year.

“Our deep-tech talent pool in AI and ML was around 70,000 last year; today the number of employees is 160,000,” said Kunnumal. “We have democratized access to AI infrastructure across offices so employees can experiment, learn and build solutions.”

TCS has conducted large-scale AI learning initiatives, including hackathons and internal innovation challenges. “Every employee now has access to AI learning platforms. Learning hours have doubled in the last year,” Kunnumal added.

18,500 new employees in the second quarter, focus on skills that are ready for the future

Despite restructuring some of its workforce, TCS continues to hire aggressively in forward-looking areas.

“We hired 18,500 people globally this quarter – that’s our gross hire – across markets, with a focus on future-proof digital and AI skills,” Kunnumal confirmed.

The company has also reaffirmed its commitment to onboarding all campus recruits with previous offers.

On reports of layoffs, Kunnumal clarified:

“We are restructuring certain areas but have honored all offers and are on track to take them on. The redundancy story is exaggerated.”

Long-term vision: AI-enabled growth and a new revenue mix

TCS expects the AI-led transformation to not only redefine internal processes but also reshape the revenue mix over time. The company envisions a model in which AI projects will account for a significant portion of future growth.

“Every project we undertake will increasingly have an AI component – ​​whether it is automation, analytics or transformation,” said Seksaria.

The company’s goal is clear: to become a global leader in AI-driven digital services, combining deep technology expertise with a scalable infrastructure base.