Mumbai, Jan 28 : Tata Consultancy Services (TCS) CEO K Krithivasan has downplayed fears that artificial intelligence will lead to widespread job losses in the IT services sector, saying the technology will primarily redefine how work is done rather than dismantle the global outsourcing ecosystem.
In an interview with the Financial Times, Krithivasan said enterprises will continue to depend on large technology partners to manage increasingly complex digital environments, even as AI-driven automation becomes more prevalent. The global outsourcing market, currently estimated at $300 billion, is unlikely to be disrupted in a fundamental way, he added.
TCS has been scaling up its AI led platforms and client solutions while realigning internal talent to match changing demand. Krithivasan acknowledged that certain roles may become redundant as AI adoption accelerates, but emphasised that overall demand for technology services remains strong.
The company’s expanding AI portfolio has delivered efficiency gains, enabling TCS to free up capacity and pursue new contracts. Industry observers note that India’s largest IT services firms are countering AI disruption by collaborating with leading model developers such as OpenAI and Anthropic to create customised enterprise solutions.
Krithivasan’s comments come amid a workforce rationalisation at TCS, which recently announced nearly 12,000 job cuts—about 2% of its global headcount as part of a broader restructuring exercise. During the October–December quarter, the company reduced its employee base by over 11,000, ending the period with 582,163 staff.
Despite the headcount reduction, TCS continues to place aggressive bets on AI. In the second quarter, the company articulated its ambition to become the world’s largest AI services provider. Krithivasan has said the firm is prepared to absorb potential revenue cannibalisation from automation, arguing that client savings will translate into fresh digital projects.
Chief Operating Officer Aarthi Subramanian echoed this view, noting sustained customer investments in cloud, data, cybersecurity and enterprise transformation to prepare for AI adoption.
For the December 2025 quarter, TCS reported a 14% year-on-year decline in net profit to ₹10,657 crore. AI-led services currently generate $1.8 billion in annualised revenue, according to the company.
Beyond services, TCS is also exploring opportunities in AI infrastructure. The firm is in talks with hyperscalers and deeptech players to establish data centres in India, positioning itself to tap rising demand for compute capacity and AI ecosystems.