N Chandrasekaran Takes Charge of TCS AI Strategy Amid Global Tech Shift

As artificial intelligence rapidly reshapes the global technology landscape, Tata Consultancy Services (TCS) is entering a critical transition phase. Tata Sons Chairman N Chandrasekaran has reportedly stepped in to work closely with TCS leadership to steer the company through this transformation and safeguard the group’s largest cash generator.

N Chandrasekaran Steps In to Lead TCS’s AI Push

According to reports citing sources, Tata Sons Chairman N Chandrasekaran has become directly involved with TCS to help the IT major navigate the challenges posed by the AI-driven disruption in the global tech sector. The move is aimed at strengthening TCS during this transitional phase and ensuring sustained growth and stability for the Tata Group.

A key part of the renewed focus is to position TCS as the default AI partner for the entire Tata Group. In parallel, the company is also seriously evaluating the acquisition of AI-focused startups to accelerate its AI transformation journey.

A senior official noted that TCS’s traditional business model can no longer remain unchanged. Chandrasekaran has reportedly delivered a clear message to the top management to take all necessary steps to protect growth and market share.

Clear Message to Employees at Dubai Event

Over the weekend, Chandrasekaran addressed more than 700 TCS employees at an annual event held in Dubai. During his address, he emphasised the urgent need for continuous upskilling in response to the growing impact of artificial intelligence.

He indicated that technology skills are set to evolve rapidly in the coming years, making it essential for employees to proactively prepare themselves for the changing demands of the industry.

Tata Group’s Heavy Dependence on TCS Dividends

The Tata Group relies significantly on TCS dividends to support its diversified business portfolio. As of 2024, Tata Sons held a 71.74 percent stake in TCS, and nearly 80 percent of Tata Sons’ dividend income came from TCS.

This dependence makes TCS’s growth and long-term stability strategically critical for Tata Sons. Chandrasekaran is keen to ensure that TCS’s growth strategy remains firmly on track amid rapidly changing technology trends and evolving client demands.

Experience Meets a New Era of Transformation

Before taking charge as Chairman of Tata Sons, N Chandrasekaran served as CEO of TCS from 2009 to 2017. Sources say he has always maintained a deep understanding of the company’s operations, but the current environment is exceptional, prompting his close involvement in TCS’s transformation.

TCS CEO K Krithivasan and Chief Operating Officer Aarthi Subramanian are regarded as Chandrasekaran’s trusted lieutenants. Both worked closely with him during his tenure as TCS CEO and are expected to execute the strategy rigorously from start to finish.

TCS on the Path of Acquisitions and Structural Changes

In response to changing realities, TCS has already initiated several measures. These include workforce rationalisation, increased investment in data centre infrastructure, a sharper focus on consulting, and strategic acquisitions.

In January, TCS acquired Salesforce consulting firm Coastal Cloud for approximately $700 million, marking the company’s largest acquisition to date. This move underlines TCS’s intent to strengthen its digital and AI-led consulting capabilities.