A senior TCS executive stated that up to 80 percent of the company's new hires will possess competencies in digital technologies and artificial intelligence (AI) going forward.
Since the share of AI-based work in total revenue grew to 10 percent in the quarter ending September, the country's largest IT services company announced that increasing the share of AI revenue will help expand its profit margin, which has not yet reached the desired level.
The company's Chief Operating Officer, Arati Subramanian, reported that out of 4,500 hired in the second quarter, about 25-30 percent were pure AI specialists, and overall, about 80 percent belonged to the 'new generation' of specialists.
When asked if this proportion would be maintained in the future, she confirmed it, adding that the required personnel are available in the market.
Responding to the question of whether this is an advantage for young specialists over experienced professionals in an environment where the younger generation has an edge due to their 'natural inclination towards AI' and relatively low costs, she emphasized that the advantage goes to people willing to 'abandon old knowledge and learn new things.'
CEO and Managing Director K Kritivisan added that if a mid-level engineer is willing to learn, it provides a huge advantage because they understand the technological landscape and the subject matter, unlike a junior engineer who may not realize this.
Kritivisan also stated that the company will continue to invest in 'niche talents' and will direct investments into mergers and acquisitions, as well as partnerships.
He noted that the trend of revenue growth from AI will also positively affect profitability, as an increase in the volume of AI deals will lead to higher margins.
Subramanian clarified that clients enter into AI agreements in a narrow vertical and then, after confirming the effectiveness of the expenditure, request expansion of this work to other areas.
When asked about the share of AI in new contracts signed and what portion of the total contract volume of $9.6 billion in the second quarter relates to AI, Kritivisan replied that the company is very conservative in classifying a deal as an AI deal, but added that almost all current work involves some aspect of AI.
In response to whether the two recently won contracts with Porsche and Best Buy, which involve integrating client personnel into TCS, foreshadow market difficulties, Kritivisan answered negatively, calling them opportunities when clients approach them to discuss transformation methods and the shift to an 'AI first' model.