TCS creates new AI and Services Transformation unit, appoints Amit Kapur as head

Tata Consultancy Services (TCS), India’s largest software exporter, is bringing together all its AI teams and expertise into a new AI and Services Transformation unit, the company informed employees in an internal memo.

TCS has appointed veteran Amit Kapur as the global head of its new AI and Services Transformation unit, effective September 1. He will take on the role of Chief AI and Services Transformation Officer and report to Aarthi Subramanian, Executive Director – President & COO.

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Kapur, who currently leads TCS’ business in the UK and Ireland (the company’s second-largest market), has been with TCS for over 26 years, holding leadership roles across multiple regions.

“Over the last few years, TCS has made significant strides in AI by scaling capabilities, reskilling its workforce, and strengthening partnerships,” the company said in the memo.

TCS has launched its new AI and Services Transformation division just a month after announcing plans to cut 12,000 jobs, raising concerns that India’s $283 billion outsourcing industry could see more layoffs as AI adoption grows.

Indian IT companies have been facing weak client spending for several quarters due to global economic challenges. With customers cutting back on discretionary tech projects, firms like TCS are turning to AI-driven solutions to boost growth and stay competitive.

With this move, TCS becomes the first Indian IT giant to set up a dedicated AI business unit, following a similar step by U.S. rival Accenture in June. The shift highlights how outsourcing leaders worldwide are restructuring for an AI-first future.

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For TCS, this is more than an internal reorganization—it shows that AI will be at the core of its client services and a major engine of future growth.