Tata Consultancy Services (TCS), the prominent Indian IT firm, is placing its strategic bets on a collaborative partnership with tech giant Microsoft to develop AI-driven software services for clients, with the aim of boosting profit margins and fueling growth. This collaboration involves an intensified effort with Azure OpenAI, a joint venture between Microsoft and OpenAI, known for its groundbreaking ChatGPT chatbot.
TCS is also making use of the cloud-based AI tool GitHub Copilot to provide tailored solutions, such as fraud detection for clients in the financial sector and personalized customer services for retailers. The adoption of these services could potentially enhance TCS’s profit margins, as stated by CEO K Krithivasan in an interview with Bloomberg News. The partnership entails the development of industry-specific solutions that can be jointly brought to market with Microsoft.
While it may take some time to reach a critical mass that significantly impacts the overall market, TCS is optimistic about the future potential of this collaboration. TCS is actively integrating AI technology into its various software offerings, leveraging its workforce of over 100,000 generative AI-ready employees to secure substantial deals.
Krithivasan is keen on observing whether this partnership can deliver sustained growth and reduce organizational friction. The ultimate aspiration is to participate more extensively in areas where customers are making investments for the future, and TCS intends to continually enhance its capabilities to support this goal.
In a strategic move, Krithivasan, who assumed the role of CEO in June, has recently restructured the company to tap into the business expertise of its senior executives and strengthen client engagement. Additionally, in May, TCS announced a collaboration with Google to offer cloud generative AI services, specifically Vertex AI, through its Model Garden, delivering innovative solutions to its customer base.
