TCS built a half-million-person firm by selling human brainpower to the world. Its chairman just said the machines are about to catch up.
Within three years, he said, TCS could run as many AI agents as it has staff.
Half A Million Workers, Half A Million Bots
At the company's annual meeting Tuesday, Chairman N. Chandrasekaran did not hedge. As he put it, "if the company has half a million employees, the day is not far when the company will have half a million AI agents."
An AI agent is software that can do tasks on its own, with little human help. People and these agents would work side by side, he said.
That is a bold thing to say out loud, since TCS is Asia's largest IT outsourcer and India's biggest tech employer.
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Fewer New Hires
For the first time, the chairman said TCS will hire fewer people than before, since some of the work will go to AI agents. He added that the whole industry is unlikely to hire as many people as it once did.
The firm started this year aiming for 25,000 fresh hires, one of its lowest targets since 2020. Fresh hires are young grads, and TCS used to take in tens of thousands of them each year.
In plain terms, the firm will lean more on bots and less on new hires. That is a big shift for a business built on people.
The whole Indian IT trade is feeling it, with the sector set to add just 135,000 workers next year, a slim 2.3% rise.
This is the old outsourcing model under strain. For years these firms grew staff and sales together, like a cab company that added cars each time it added rides.
That link is now breaking.
The AI Money Is Growing Fast. The Stock Isn't.
TCS's AI business is growing fast. Its AI sales run-rate rose from $1.5 billion two quarters ago to $2.3 billion in the most recent one, and he expects it to double next year.
He calls AI the biggest growth shot in the firm's history.
The stock has not kept up. He noted that IT and software firms have lost roughly 35% to 45% of their value, as buyers ask how AI and old-school tech work fit together.
The fear is simple. Buyers worry that AI could shrink the old model faster than new work shows up.
Still, the chairman sees a bright side, since he thinks the shift will open up brand new kinds of work over time.
Worth Noting
Chandrasekaran says the hiring squeeze is tied to a transition, and that the "AI world will produce so many more opportunities" once it passes.
For now, the firm that sells human labor is quietly planning for a workforce that is half machine.
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