Tata Consultancy Services is recalibrating its growth strategy as it deepens its focus on artificial intelligence, prioritizing capability building over immediate revenue gains. Speaking at the World Economic Forum 2026 in Davos, Managing Director and CEO K Krithivasan outlined the company's ambitious vision to become the world's largest AI-led services company.

Strategic Vision and Five Pillars

Tata Consultancy Services has defined its AI transformation strategy around five key pillars, as explained by Krithivasan. The company aims to transform itself internally, revolutionize its services, enhance customer offerings, and broaden its scope within the AI ecosystem. This comprehensive approach includes building capabilities through mergers and acquisitions while expanding into AI data centers to provide end-to-end solutions.

The CEO emphasized that recent acquisitions, including a $700.00 million deal and a partnership with TPG, are not intended to immediately boost revenue but to build new capabilities and create long-term value through synergies across the TCS ecosystem.

Acquisition Strategy and Future Plans

Krithivasan confirmed that TCS is "more acquisitive than before" but clarified that inorganic growth is not being pursued as a revenue driver. Instead, the focus remains on building capabilities at speed and scale. The company is evaluating multiple opportunities, though the CEO indicated these would not be announced in rapid succession.

The strategic approach centers on providing comprehensive AI solutions to customers across all layers, from infrastructure and hardware design to model-as-a-service and agentic AI capabilities. This "infrastructure to intelligence" philosophy positions TCS to serve customers across the entire AI spectrum.

Workforce Strategy and AI Integration

Addressing concerns about AI's impact on employment, Krithivasan reiterated that AI transformation is not about job reduction but creating a future-ready workforce. The company continues active hiring from colleges and the market while providing extensive support for associate reskilling and learning new technologies.

While acknowledging that some roles may evolve and selective workforce adjustments have occurred, the overall strategy emphasizes enhancement of productivity and delivery capabilities rather than workforce reduction.

AI Revenue Reporting and Market Position

TCS has established specific guardrails for reporting AI revenue, maintaining discipline in classification despite AI becoming embedded across all services. The company reported AI revenue for the first time last quarter and plans to continue this practice with clear definitions of what constitutes AI-driven business.

Krithivasan acknowledged that while AI elements exist in traditional services like application development and business process outsourcing, TCS focuses on projects that cannot be completed without AI, such as mainframe-to-modern technology migrations and AI-reimagined business processes.

Growth Outlook and Market Confidence

Despite near-term growth challenges and headcount adjustments, TCS leadership expressed confidence in the company's market position, order pipeline, and competitive standing. The CEO emphasized that the company is not losing market share and continues winning deals in the marketplace.

While declining to provide specific outcome targets, Krithivasan indicated that significant progress toward becoming the world's largest AI-led services company would be visible within a year. The success will be measured through a composite metric including workforce capabilities, revenue growth, strategic partnerships, and analyst positioning.

Source: https://www.cnbctv18.com/business/companies/davos-2026-capability-first-revenue-later-k-krithivasan-on-tcs-ai-strategy-19824663.htm

Tata Consultancy Services executed a significant block trade on the National Stock Exchange (NSE), marking notable institutional trading activity in the IT services sector.

Block Trade Details

The transaction involved substantial volume and value, reflecting institutional investor participation in TCS shares.

Market Significance

Block trades represent large-volume transactions typically executed by institutional investors, mutual funds, or other significant market participants. These transactions are conducted outside the regular market to avoid impacting the stock's market price during execution.

The transaction price of ₹3,139.50 per share indicates the level at which institutional investors were willing to transact in TCS shares. Such block deals often provide insights into institutional sentiment and investment flows in the stock.

About the Transaction

The ₹52.44 crore transaction represents a meaningful volume of shares changing hands in a single block trade. For TCS, one of India's largest IT services companies, such institutional activity reflects continued investor interest in the stock.

Block trades are typically pre-negotiated transactions between large investors and are executed on the exchange platform to ensure transparency and regulatory compliance.