TCS Launches New AI Unit with Amit Kapur at the Helm
TCS launched a dedicated AI unit led by Amit Kapur, consolidating expertise and signaling a paradigm shift in IT services as firms increasingly gravitate toward AI-driven growth amid global uncertainties.
India's largest IT services company, Tata Consultancy Services (TCS), has unveiled a specialized unit dedicated to artificial intelligence-driven operations and has appointed long-time insider Amit Kapur to lead the initiative , according to a company memo reviewed by Reuters.
The newly created AI and services transformation division is designed to consolidate TCS’s existing expertise in artificial intelligence, with the goal of intensifying its focus on advanced domain solutions and accelerating the pace of innovation. The memo highlighted that this move underscores the company’s determination to become a frontrunner in the evolving AI ecosystem.
This development arrives just a month after TCS, considered a sectoral bellwether, revealed plans to reduce its workforce by nearly 12,000 roles. The decision has sparked conjecture that India’s $283 billion outsourcing industry may experience additional job contractions as AI integration expands across operational frameworks.
Indian IT firms are now vigorously competing to develop and deploy AI-powered products, aiming to capture client investments that have been constrained for several quarters due to prevailing macroeconomic turbulence worldwide. “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 stated in the memo.
Amit Kapur, who has been associated with TCS for over twenty years, will officially assume charge of the unit in September. Before this appointment, he headed the company’s UK and Ireland business sphere. The organization has not yet responded to Reuters’ request for further confirmation regarding his role or the details of the unit.
With this initiative, TCS becomes the first Indian IT major to establish a standalone business structure dedicated entirely to AI and adjacent technologies, mirroring a similar strategic maneuver by U.S.-based rival Accenture in June.
Industry analysts believe such moves signify a paradigm shift in the IT sector. “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 research firm EIIR Trend. “The change is also a reflection of extracting more AI-focused projects from clients.”
Experts note that the strategy reflects not only a recalibration of traditional outsourcing models but also deliberate gravitation toward cognitive automation, algorithmic efficiencies, and malleable platforms. The implications could be transformative, reshaping client engagement models and creating fresh opportunities despite economic volatility.
