TCS Targets 80% AI And Digital Hiring, Growing AI Business Could Lift Margins

Mumbai: Tata Consultancy Services expects 80 per cent of its new hires to possess digital and artificial intelligence skills, reflecting a shift in workforce requirements as AI-led work expands.

AI contributed 10 per cent of revenue in the September quarter. Management said rising business volumes in this segment could improve profitability, with margins still below the company’s aspirational levels.

AI And Digital Skills Shape Hiring

Chief Operating Officer Arathi Subramanian said TCS added 4,500 employees during Q2. Around 25–30 per cent represented pure AI talent, while approximately 80 per cent belonged to new-age skill categories.

She indicated that a similar hiring mix would continue and said suitable talent was available in the market.

The company’s approach emphasizes digital capabilities as customers expand their use of artificial intelligence across business functions.

Learning Matters Across Career Stages

Subramanian said opportunities favour professionals willing to unlearn and acquire new skills, rather than depending on career stage.

Chief Executive Officer and Managing Director K Krithivasan said mid-level engineers who embrace learning bring an advantage through their understanding of technology environments and industry domains.

TCS will continue investing in specialised talent, alongside mergers, acquisitions and partnerships, he added.

Expanding AI Projects Could Support Margins

Krithivasan said higher volumes of AI deals could deliver margin benefits.

Subramanian explained that customers often begin with AI projects in a limited business area. Once results demonstrate value, they seek to extend work across other functions.

TCS reported total contract value of $9.6 billion in Q2. Management did not disclose the AI share, saying the company applies conservative criteria when classifying contracts, although AI features in virtually all current work.

Porsche And Best Buy Deals Explained

Krithivasan rejected suggestions that recent Porsche and Best Buy contracts, involving the absorption of client employees, signalled market challenges.

He described them as opportunities to help customers transform their operations and become AI-first businesses, positioning the arrangements as part of technology-led change.