TCS Forms New AI-Focused Unit, Appoints Amit Kapur as Head

India's TCS forms AI-focused unit and names insider Kapur as head, company memo shows

BENGALURU, Aug 26 (Reuters) - India's largest IT firm Tata Consultancy Services (TCS.NS), opens new tab formed a new unit for artificial intelligence-based operations on Tuesday and named insider Amit Kapur as its chief, a company memo seen by Reuters showed. The new AI and services transformation unit will house all of the company's existing capabilities in the technology with an aim to deepen its focus on AI domain solutions and accelerate innovation, the memo said. TCS' formation of the new unit comes a month after the sector bellwether announced plans to cut 12,000 jobs, flaring up signals that India's $283 billion outsourcing sector could see more layoffs as the use of AI deepens. Indian IT companies are racing to adopt and offer more AI products to attract client spending, which has been suppressed for many quarters due to global macro-economic uncertainties. "Over the last few years, TCS has made major forays on the AI front by scaling our capabilities, reskilling our workforce and deepening our partnerships," the company said in the memo. Kapur, who has been with the firm for two decades, takes charge of the unit from September. He last headed TCS' UK and Ireland business. The company did not immediately respond to Reuters' request for comment seeking confirmation on Kapur's appointment and formation of the unit. TCS is the first among Indian IT companies to dedicate a business catering solely to AI and allied technologies, and follows a similar move by U.S. rival Accenture, opens new tab(ACN.N), opens new tab in June. "IT firms have started to think that AI-led transformation is their only major lever now to accelerate growth amid tepid macros," said Pareekh Jain, founder of IT research firm EIIR Trend. "The change is also a reflection of extracting more AI-focussed projects from clients." Writing by Hritam Mukherjee; Editing by Sonia Cheema and Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab

India's TCS forms AI-focused unit and names insider Kapur as head, company memo shows

BENGALURU (Reuters) -India's largest IT firm Tata Consultancy Services formed a new unit for artificial intelligence-based operations on Tuesday and named insider Amit Kapur as its chief, a company memo seen by Reuters showed. The new AI and services transformation unit will house all of the company's existing capabilities in the technology with an aim to deepen its focus on AI domain solutions and accelerate innovation, the memo said. TCS' formation of the new unit comes a month after the sector bellwether announced plans to cut 12,000 jobs, flaring up signals that India's $283 billion outsourcing sector could see more layoffs as the use of AI deepens. Indian IT companies are racing to adopt and offer more AI products to attract client spending, which has been suppressed for many quarters due to global macro-economic uncertainties. "Over the last few years, TCS has made major forays on the AI front by scaling our capabilities, reskilling our workforce and deepening our partnerships," the company said in the memo. Kapur, who has been with the firm for two decades, takes charge of the unit from September. He last headed TCS' UK and Ireland business. The company did not immediately respond to Reuters' request for comment seeking confirmation on Kapur's appointment and formation of the unit. TCS is the first among Indian IT companies to dedicate a business catering solely to AI and allied technologies, and follows a similar move by U.S. rival Accenture in June. "IT firms have started to think that AI-led transformation is their only major lever now to accelerate growth amid tepid macros," said Pareekh Jain, founder of IT research firm EIIR Trend. "The change is also a reflection of extracting more AI-focussed projects from clients." (Writing by Hritam Mukherjee; Editing by Sonia Cheema and Leroy Leo)

India's TCS names Amit Kapur as head of newly-formed AI unit, company memo shows

Tata Consultancy Services Limited is one of the largest Indian IT services companies. Net sales break down by activity as follows: - IT services (99%): consulting and engineering services, solutions and systems integration, management applications development, outsourcing services, etc.; - sale of IT equipment and software licenses (1%). Net sales break down by market between bank-financial services-insurance (40%), telecoms and media (16.5%), retail and distribution (15.6%), manufacturing industry (9.7%) and other (18.2%). Net sales are distributed geographically as follows: India (5.71%), the Americas (51.3%), Europe (31.9%) and other (11.7%).