TCS Plans 80% of New Hires to Have AI Skills as AI Revenue Hits 10% of Business

TCS Hiring Strategy Prioritizes Digital and AI Skills

Tata Consultancy Services has announced a significant shift in its hiring approach, with approximately 80% of future hires expected to possess digital and AI skills1

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. This recruitment transformation reflects the IT services giant's response to growing client demand for professionals who can integrate AI into business operations rather than simply use generative AI tools. Chief Operating Officer Arathi Subramanian revealed that of the 4,500 employees added during the July-September quarter, 25-30% had specialized AI skills while approximately 80% possessed broader new-age tech skills1

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. When asked if this proportion would continue, Subramanian confirmed the trend, noting that the desired talent pool is available in the market.

AI-Linked Revenue Drives Business Expansion

The TCS hiring strategy shift comes as AI-led work now accounts for 10% of the company's total revenue in the recently concluded September quarter1

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. This marks a substantial milestone for the company's AI business expansion efforts. Chief Executive and Managing Director K Krithivasan indicated that increasing volumes of AI engagements will deliver margin benefits, helping TCS expand profit margins that currently remain below aspirational levels1

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. The company reported a total contract value of USD 9.6 billion for Q21

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. While TCS remains conservative in classifying deals as AI-specific, Krithivasan noted that virtually all current work includes some aspect of AI1

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Experience and Adaptability Matter in AI Recruitment

Contrary to assumptions that freshers might have an advantage due to AI-nativity and lower costs, TCS emphasizes the importance of willingness to learn over age or experience alone. Subramanian stated that the advantage goes to those willing to "unlearn and learn"1

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. K Krithivasan added that mid-level engineers willing to learn have a significant advantage because they understand the technology landscape and possess domain knowledge that junior engineers may lack1

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. This approach highlights that IT professionals with business process understanding can apply AI more effectively to real-world challenges. The company seeks candidates who can assess the reliability of AI outputs, integrate AI into existing systems, and develop solutions addressing specific business challenges2

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Investment Strategy and Client Engagement Patterns

TCS plans to continue investing in niche talent, mergers and acquisitions, and partnerships to strengthen its AI capabilities1

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. Subramanian observed a pattern where customers typically sign up for an AI deal in a small vertical, then request expansion to other areas once the efficacy of the spending gets established1

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. Recent deal wins with Porsche and Best Buy, which involved absorbing client staff into TCS, represent opportunities where customers seek transformation to become AI-first organizations1

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. For the workforce, this shift signals that combining AI knowledge with technical expertise and domain knowledge will be essential. Learning generative AI tools serves as a starting point, but professionals must understand how to apply them responsibly, validate outputs, and deliver measurable results to meet evolving client demand and profitability goals.