Tata Consultancy Services (TCS), India’s largest IT services firm by market capitalisation, has restructured its AI.Cloud division into two distinct business units, signalling a bold step toward capitalising on emerging opportunities in artificial intelligence (AI) and cloud services. The company has also appointed dedicated leaders for each unit in a move designed to sharpen focus and enhance operational agility.

This development was confirmed by senior executives at TCS, reported Press Trust of India (PTI). The restructuring reflects the growing demand for GenAI and cloud technologies across global markets and aims to offer more specialised services to clients.

TCS had originally launched the AI.Cloud unit in August 2023, with the intention of unlocking deeper business value by integrating cloud technologies with generative AI. However, over the past year, the volume and complexity of activity in this domain has expanded significantly.

Siva Ganesan, who now heads the AI.Cloud unit, noted, “AI is getting more pervasive by the day and featuring in every conversation now. This is only expected to get bigger and more intense as we go ahead.” He added that the unit will serve as a central repository of all things AI within the organisation.

Following the split, Krishna Mohan, previously the deputy head of the AI.Cloud unit, will lead the newly separated cloud business. Meanwhile, TCS has appointed Ashok Krish as the global head of AI and Satish Byravan as the global head of Data—two strategic roles meant to steer the firm’s AI-first approach across service verticals and geographies.

According to executives, the rationale behind the split lies in the immense and largely untapped growth potential of both AI and cloud as independent business verticals. The decision to form specialised units is part of a broader strategy to enhance focus, speed up execution, and deepen the company’s competitive edge in an increasingly digital-first world.

A senior executive commented, “For us, the volume and vibrancy of activity in the AI and data space has grown many fold in the last 12 months.” Though TCS has not yet disclosed revenue breakdowns for AI-related services, internal estimates indicate a steady and accelerating demand for enterprise-scale AI solutions.

The AI division is also being designed to offer end-to-end capabilities by incorporating data services into its core operations. Given that many clients are yet to bring their data infrastructures up to AI-ready standards, this integrated approach allows TCS to provide full-stack solutions that combine data modernisation with AI adoption.

As part of the renewed focus, TCS is not just hiring AI specialists from the external market but is also revamping internal training programmes to upskill its existing workforce. The company’s goal is to build a robust talent pipeline equipped to deliver next-gen AI and cloud services.

This two-pronged strategy—external hiring and internal capability development—is central to TCS's plan to stay ahead of the curve in what is expected to be one of the most disruptive tech waves in enterprise services.

While AI and cloud continue to transform every layer of IT services and enterprise solutions, TCS is positioning itself as a key enabler of that change. The company believes that having dedicated business units will improve alignment with client needs and unlock deeper innovation across sectors such as healthcare, BFSI, retail, and manufacturing.