New Delhi: Tata Consultancy Services (TCS) has announced the formation of a wholly owned subsidiary in India to develop large-scale AI and data centres with a combined capacity of up to 1GW. The initiative reflects the company’s strategic focus on becoming an AI-driven technology services provider amid a challenging global technology environment.
The announcement coincided with TCS’s Q2FY26 financial results, where the company reported revenue of Rs 65,799 crore, up 3.7% quarter-on-quarter and 7.6% year-on-year. Net profit, however, declined to Rs 12,075 crore from Rs 12,760 crore in the previous quarter. The IT major did not hold its customary press conference this quarter due to a scheduling overlap with Ratan Tata’s anniversary.
In a key strategic move, TCS also acquired Delaware-based Salesforce partner ListEngage for $72.8 million. The acquisition will add over 100 professionals and more than 400 Salesforce certifications to its Enterprise Solutions unit in the United States, strengthening TCS’s capabilities in Marketing Cloud, CRM, Data Cloud, and AI advisory services.
The company has further streamlined its internal structure with the creation of an Artificial Intelligence and Services Transformation unit, led by Amit Kapur, who currently oversees TCS’s UK and Ireland business.
According to Biswajit Maity, Senior Principal Analyst at Gartner, large Indian IT firms, including TCS, are facing a period of “uncertainty pause,” as global clients delay technology spending due to macroeconomic and geopolitical concerns. Maity noted that while AI-led demand is expected to rise in 2025, increasing attrition could pose operational challenges for the company.
In July, TCS announced a 2% workforce reduction impacting around 12,000 employees citing skill mismatches rather than automation or AI displacement.
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