TCS bets on Microsoft AI partnership to fuel growth: Report

India’s largest IT services firm, Tata Consultancy Services (TCS) on Monday said that it is betting on its partnership tech major Microsoft to develop artificial intelligence (AI)-based software services. The collaboration with Azure OpenAI, formed by Microsoft and Sam Altman's OpenAI, involves using the cloud-based AI tool GitHub Copilot. This tool is being used to provide various solutions, such as fraud detection for financial services and personalised customer services for retailers. 

The goal, as mentioned by TCS's CEO K. Krithivasan in an interview with Bloomberg published on Monday, is to "fuel growth and improve profit margins".

The partnership's focus is on creating industry-specific solutions for the market. However, the timeline for achieving significant market impact remains uncertain, with estimates suggesting it could take at least a couple of quarters, it said.

TCS, which has more than 100,000 generative AI-ready employees, is incorporating AI technology into its software offerings, which is proving beneficial in securing substantial business deals.

Krithivasan, who took on the role of CEO in June, has also initiated organisational changes to better leverage the expertise of senior executives and enhance client relationships.

As traditional outsourcing faces margin pressures due to economic concerns and geopolitical tensions, Indian IT firms are shifting their focus to technologies such as big data, machine learning, analytics, cloud computing, and AI to help clients revitalise their businesses and remain competitive against agile startups.

TCS's CEO Krithivasan emphasized the commitment to align more closely with clients' future investments and enhance capabilities for deeper engagement with these transformations. "We will continue to enhance our capabilities so that we can participate more," he said.

To be sure, in May, TCS announced its partnership with Google to offer its cloud generative AI services, Vertex AI, for its Model Garden, and offering solutions for its customers. This offering utilises Google Cloud's generative AI services to create custom-tailored business solutions to help clients accelerate their growth and transformation.