What happened
Tata Consultancy Services (TCS) CEO K Krithivasan announced the company encourages its over 600,000 employees to become AI fluent, even if it means cannibalising existing revenue streams. Krithivasan stated TCS is not afraid of AI displacing jobs, believing it will create more opportunities. The company observes senior employees are slower to build AI-based solutions compared to younger staff, emphasising hands-on solution development beyond basic prompting. This strategy aligns with rival Wipro's expectation that rapid AI adoption will boost demand for software service providers.
Why it matters
This directive shifts the burden of AI skill development onto individual employees, impacting career progression for senior staff who must now prioritise practical AI application over theoretical knowledge. For procurement teams, this signals a strategic pivot in how large IT service providers will deliver value, requiring evaluation of a vendor's internal AI fluency and skill transformation programmes. The willingness to cannibalise revenue demonstrates a long-term strategic bet on AI-driven services, potentially reshaping future service contracts and pricing models.
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