TCS says AI skills will be key for freshers as it expands its AI business

TCS is preparing to hire more employees with artificial intelligence (AI) and digital skills as it looks to expand its AI business. The IT services company expects around 80 per cent of its future hires to have skills in these areas, reflecting how technology requirements are changing across the industry.The hiring plans come as AI-related work accounted for 10 per cent of TCS' revenue in the September quarter. The company believes that growing its AI business could also improve profit margins, which remain below its desired levels.TCS added 4,500 employees in the second quarter. Of these, around 25 to 30 per cent had specialised AI skills, while nearly 80 per cent belonged to what the company describes as new-age technology talent, Chief Operating Officer Arathi Subramanian told PTI. Subramanian said TCS expects this hiring pattern to continue, adding that the required talent is available in the market.TCS says AI skills are not limited to freshersWhile fresh graduates may have an advantage because of their familiarity with newer technologies, TCS believes experienced professionals can also benefit from the growing demand for AI skills. The company's Chief Executive Officer and Managing Director K Krithivasan said the advantage would depend on a person's willingness to learn and adapt to changing technology requirements. "If a mid-level engineer is willing to learn, it gives a huge advantage because he or she understands what is the technology landscape, what is the domain," Krithivasan said.His comments suggest that companies will continue to need experienced employees who understand business requirements and existing technology systems, even as AI becomes a bigger part of software development and IT services. TCS also plans to keep investing in specialised talent, alongside mergers and acquisitions and partnerships, as it builds its AI capabilities.AI business could improve TCS margins The company is also looking at AI as a potential driver of profitability. Krithivasan said margins could benefit as AI deals increase in volume. TCS said customers often begin with smaller AI projects in specific business areas. Once they see results from their spending, they may expand these projects to other parts of their operations.Although the company is cautious about classifying contracts as AI deals, Krithivasan said AI is now involved in almost all the work TCS undertakes. The company reported a total contract value of $9.6 billion for the September quarter, although it did not disclose how much of this came specifically from AI-related work.AI hiring comes amid uncertainty for Indian tech workers in the USTCS' focus on building its AI business comes at a time when Indian IT companies are also dealing with uncertainty around immigration rules in the US. The US government recently suspended the processing of permanent labour certification applications under the PERM programme for eight technology companies, including TCS, Infosys, Wipro and HCLTech. The program is a key step for many employment-based green card applications.TCS has said the move is not expected to affect its workforce plans or client engagements, noting that its PERM applications were in single digits over the past two years. Meanwhile, Zoho founder Sridhar Vembu has urged Indian professionals facing uncertainty in the US to return home and help build India's technology sector.The developments add to the questions facing India's IT industry as companies invest in AI, reassess their hiring needs and navigate changing conditions in overseas markets.- Ends