TCS to form a new AI and services transformation unit

IT services firm Tata Consultancy Services (TCS) has created a new Artificial Intelligence (AI) and Services Transformation unit. Amit Kapur, the head of TCS’ business in the UK and Ireland, has been appointed to lead this unit globally, Reuters has reported. He will be the chief AI and services transformation officer and will be reporting to Aarthi Subramanian, TCS’ chief operating officer. 

This new unit will integrate with TCS’ existing teams and capabilities in AI. The unit will also work closely with other horizontal service units and industry business groups. TCS has not issued a statement yet on this development. 

In July, TCS announced that it would be laying off 2% of its workforce, affecting roughly around 12,000 staffers. The mid- to senior-level employees will be hit by this decision. CEO Krithivasan at the time said that the layoff was due to skill mismatch rather than a direct impact of AI and automation. 

TCS’ Q1 FY26 growth was driven by AI and data, TCS Interactive, and cybersecurity, as clients focused on scaling AI, transforming contact centres, optimising costs, and improving cyber defenses. The quarter was overall a weak one for the firm. 

The country’s largest IT services company reported a consolidated net profit of ₹12,760 crore for Q1 FY26, a 4.38% increase from ₹12,224 crore in Q4 FY25. Consolidated revenue, however, decreased by 1.6% to ₹63,437 crore from ₹64,479 crore in the previous quarter, or 0.6% to $7,421 million from $7,465 million in dollar terms.