Tata Sons Chairman N Chandrasekaran is increasing his direct involvement with Tata Consultancy Services (TCS) as artificial intelligence begins to disrupt the traditional outsourcing-driven IT services model. According to a report by The Economic Times, the move reflects growing concern within the Tata Group about protecting TCS, its largest cash generator, amid rapid technological change.
Advances in AI are threatening long-established IT service structures, prompting Tata Sons to ensure that TCS remains relevant to global clients. People familiar with the matter said the group wants TCS to stay central to its financial engine as new AI-led platforms challenge legacy vendors. The renewed engagement highlights the strategic importance of the IT major to the conglomerate.
As part of the shift, Chandrasekaran is backing a plan to make TCS the default AI and technology partner for Tata Group companies. The company is also exploring acquisitions of AI-focused startups to accelerate capability-building and differentiate its offerings. Senior executives have acknowledged that the existing business model cannot remain unchanged in an AI-driven environment.
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Speaking to over 700 employees at an internal event in Dubai, Chandrasekaran stressed the need for continuous upskilling. He warned that AI would fundamentally reshape the way technology services are delivered and urged teams to focus on growth while defending TCS’s core business. CEO K Krithivasan and COO Aarti Subramanian are seen as key figures in executing this transition.
Market volatility has underlined the urgency of the shift. Earlier this month, global tech stocks fell sharply following AI-related announcements, with the Nifty IT index dropping nearly 8 percent and TCS touching a five-year low before recovering. With Tata Sons owning 71.74 percent of TCS and nearly 80 percent of its dividend income coming from the firm, Chandrasekaran’s closer oversight signals that the AI pivot is now a top priority for the Tata Group.
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