TCS hiring shift: 80% of new employees to have new-age tech skills

Around 80% of new hires at Tata Consultancy Services (TCS) will have digital and new-age technology skills, as the IT major continues to prioritise capabilities linked to artificial intelligence and emerging technologies.

Arathi Subramanian, TCS chief operating officer, told the Press Trust of India (PTI) that nearly 80% of the 4,500 employees added during the July-September quarter had broader new-age technology skills. Around 25% to 30% of these hires had specialised AI skills.

Subramanian confirmed the hiring mix would continue, adding that the required talent was available in the market. The approach reflects TCS’s focus on building a workforce equipped to support technology-led projects and evolving client requirements.

AI skills take a larger role in hiring

TCS’s hiring plans come as companies increasingly assess the skills employees need to work with AI and other emerging technologies. The company’s latest recruitment figures distinguish between broader digital capabilities and specialised AI expertise.

The September-quarter hiring data highlights three key points:

• Total employee additions: TCS added 4,500 employees between July and September.

• New-age technology skills: Nearly 80% of the new hires had broader digital and new-age technology skills.

• Specialised AI skills: Around 25% to 30% of the hires had specialised AI capabilities.

The figures indicate a hiring emphasis on technology skills, although the company has not disclosed a detailed breakdown of the specific skills or roles covered by these categories.

TCS CEO says experience still matters in the AI era

The shift towards AI skills has raised questions about whether younger graduates have an advantage over experienced professionals, particularly as familiarity with newer tools becomes more valuable.

However, K Krithivasan, TCS chief executive officer and managing director, said an employee’s willingness to learn and adapt remained important. He highlighted the value experienced engineers bring through their understanding of technology landscapes and business domains.

Krithivasan said a mid-level engineer willing to learn could have a significant advantage because of this existing knowledge. His remarks suggest that AI capability does not depend solely on familiarity with new tools, but also on the ability to apply technology within a business context.

AI business accounts for 10% of TCS revenue

The hiring shift coincides with an expansion in TCS’s AI business. Krithivasan said AI-related business accounted for 10% of the company’s overall revenue in the September quarter.

He expects larger volumes of AI deals to support margin improvement. As clients expand AI engagements, the company expects the business to contribute more meaningfully to profitability.

Subramanian said customers often begin with AI projects in a specific business area. Once they see evidence of value, they may extend those engagements to other functions.

Krithivasan also said TCS takes a conservative approach when classifying contracts as AI deals. The company did not disclose the AI component of its $9.6 billion total contract value for the September quarter, although Krithivasan said some aspect of AI was present in virtually all its current work.