- TCS consolidates AI under a new global unit
- Veteran executive Amit Kapur appointed to lead
- Move signals sharper focus on AI-led transformation
A shift in TCS’ AI strategy
Tata Consultancy Services (TCS), India’s largest IT services provider, has announced the creation of a new AI and services transformation unit. The decision reflects a strategic shift as the company looks to accelerate its use of artificial intelligence across client services and internal operations.
The new unit will be led globally by Amit Kapur, who currently heads the UK and Ireland business for TCS. From September 1, Kapur will take on the role of chief AI and services transformation officer, reporting directly to executive director and chief operating officer Aarthi Subramanian.
Consolidating AI efforts
TCS has been restructuring its AI focus over the past year. In Q4FY25, it carved out an AI and data unit from its AI.Cloud business. The newly announced transformation unit consolidates those initiatives into a single structure, bringing together AI teams and capabilities across the company.
According to an internal communication reviewed by Business Standard, the aim is to simplify client engagement, strengthen service offerings, and speed up digital transformation projects. The company also plans to expand its global TCS Pace Ports – centres designed to showcase applied AI use cases – to bring clients closer to practical adoption.
Strengthening competitiveness
Industry analysts view the move as a response to competition from global rivals such as Accenture and Cognizant, who have taken more aggressive positions on AI. TCS has until now followed a cautious approach, relying heavily on its low-cost delivery model.
Peter Bendor-Samuel, founder of Everest Group, noted that the restructuring signals greater investment and leadership focus on AI. He said, “The appointment of Amit Kapur, a senior and respected executive, underscores the seriousness with which TCS is addressing the AI challenge.”
Balancing restructuring and workforce changes
The announcement comes shortly after TCS confirmed it would reduce its global workforce by around 2 per cent in the current financial year. The layoffs are part of a broader push to become more agile and to reallocate resources towards AI-driven business transformation.
Outlook
By centralising its AI initiatives, TCS aims to scale adoption across industries including operations, engineering, and enterprise modernisation. The company also intends to deepen its domain-specific AI solutions and expand partnership ecosystems.
For clients, this could mean faster deployment of AI-enabled services and closer alignment between digital transformation goals and delivery models. For TCS, the restructuring marks a more direct effort to compete with peers in what is becoming the most critical area of IT services growth.
