Tata Consultancy Services (TCS) plans to build a team of up to 8,900 forward-deployed AI engineers (FDEs) while evaluating acquisitions in artificial intelligence, cybersecurity and data security as India’s one of the largest IT services company expands its enterprise AI strategy.
The announcement comes months after TCS’s workforce declined by nearly 20,000 employees during second quarter of FY2026, a decrease of 19,755 from 613,069 at the end of the previous quarter, as the company restructured its workforce amid changing business and technology demands.
As of June 30, 2026, TCS had a global workforce of 593,798 employees, according to its latest quarterly results.
TCS CEO and MD K. Krithivasan told Reuters that forward-deployed engineers would eventually account for 1% to 1.5% of the company’s workforce. Based on its current headcount, that translates to approximately 5,900 to 8,900 engineers.
He did not specify whether the positions would be filled through new hiring or by reskilling existing employees.
Forward-deployed engineers work directly with enterprise customers to integrate AI models into existing business systems, customize applications and help move AI initiatives from pilot projects to enterprise-wide deployments.
Separately, in its first-quarter FY27 results, TCS reported annualized AI revenue of $2.6 billion, up 13.6% sequentially, while securing multiple AI-led transformation deals, including an $800 million engagement with SKF. The company also announced partnerships with Anthropic and Mistral AI to broaden its AI ecosystem.
During TCS’s first-quarter earnings, Krithivasan said, “As customers accelerate investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth.”
TCS also reported total contract value (TCV) of $9.5 billion in the first quarter, including several AI-led transformation engagements. Chief Financial Officer Samir Seksaria added that the company remains focused on “building, acquiring, or partnering” for AI-led capabilities.
Seksaria told Reuters that the company spends about $1 billion annually on talent development and making AI accessible internally, with a focus on employee training, targeted hiring and niche recruitment in AI-native technologies.
The strategy reflects a broader industry trend. Recently, Microsoft cut 4,800 job, about 2.1% of its global workforce, as it continued investing heavily in AI infrastructure. In January this year, Amazon also cut about 16,000 corporate jobs as it accelerated AI adoption and broader restructuring efforts. Oracle’s reported workforce declined by about 21,000 employees over the past year as the company expanded its AI investments while Cloudflare Laid off 1100, citing 600% surge in internal AI use.
Generative AI is transforming India’s $315 billion IT services industry, prompting companies to invest in AI-focused roles and capabilities as routine engineering work becomes increasingly automated, enabling projects to be delivered faster and at lower costs.
Also Read: “I Helped AI Learn My Work”: Ex Oracle Employees on the Layoff They Never Saw Coming
