‘Not hiring the kind of numbers we used to’: TCS chairman signals end of traditional campus selection spree

Tata Consultancy Services (TCS) is poised to reduce its hiring scale as artificial intelligence (AI) increasingly automates IT operations, marking a significant shift in workforce planning.

AI’s Impact on the IT Industry

Speaking at the company’s 31st annual general meeting, TCS chairman N. Chandrasekaran emphasized the rise of AI agents, indicating a fundamental change in how the IT industry will operate in the forthcoming years. “The company will not be hiring the kind of numbers that you used to hire,” he stated.

Integration of AI Agents

According to Chandrasekaran, this transformation will extend beyond TCS, significantly affecting the broader IT services sector as AI becomes intricately woven into software development and business operations.

Shifts in Workforce Composition

“Why the industry is unlikely to hire the same number of people they used to hire? Because certain portions of the work in the current scheme of things will go to AI agents,” he explained.

No Layoffs Planned

Despite the changing recruitment trends, Chandrasekaran reassured both employees and investors that TCS has no plans for large-scale job cuts. “There is no downsizing of staff. That’s not planned at all,” he confirmed.

Focus on Talent and Automation

Chandrasekaran elaborated on the company’s strategy, stating, “We just want to have the right talent and we want to use AI agents. The rate of addition of employees will not be as it used to be.”

Future with AI Agents

The chairman projected a future where AI agents could equal the human workforce, stating, “If the company has half a million employees, the day is not far when the company will have half a million AI agents.” This statement captures the rapid evolution of AI adoption across the global technology landscape.

AI as a Business Opportunity

Chandrasekaran highlighted that, despite concerns surrounding hiring, AI represents one of the most significant business opportunities TCS has encountered in years. He noted that the company’s AI-related revenue has been consistently growing, with projections indicating it could double annually.

Projected Revenue Shift

He anticipated that by 2028-2030, virtually all of TCS’s revenue streams could incorporate an AI component.

TCS’s Investment in AI

To enhance its position within the evolving AI ecosystem, TCS is significantly investing in AI talent, infrastructure, and technology platforms.

Building Industry-Specific AI Agents

Chandrasekaran outlined initiatives, such as developing industry-specific AI agents and expanding AI assets, as well as investing in data centres and sovereign cloud infrastructure.

Commitment to Reskilling

The company plans to place considerable emphasis on reskilling its workforce as AI adoption accelerates across various industries.