Tata Consultancy Services (TCS) plans to start developing software based on artificial intelligence within the framework of cooperation with Microsoft.
Asia’s largest outsourcing company intends to provide customers with software services with machine intelligence. This aspiration is aimed at achieving the goal of obtaining higher margins necessary for business growth.
The company has deepened its partnership with Azure OpenAI, an association of Microsoft and the developer of the world’s most popular chatbot based on artificial intelligence called ChatGPT under the leadership of Sam Altman. In this case, the cloud-based machine intelligence tool GitHub Copilot is used to offer financial services customers solutions for detecting fraudulent interference and personalized maintenance for retailers.
TCS Chief Executive Officer K Krithivasan, during a conversation with media representatives, stated that services using products offered under the mentioned partnership can help the company increase profitability. He also said that the brand he heads is currently working with Microsoft to create industry-specific production that can be jointly presented on the market. According to him, currently, the main question is when a critical mass of new solutions will be formed that can affect the situation on the market in a global sense. TCS CEO believes that this moment will come no earlier than next year.
Currently, the number of staff of this company is more than 100,000 employees who are ready to create artificial intelligence tools and technologies. TCS implements AI in its software offerings, as a result of which it has the opportunity to conclude large deals.
K Krithivasan started working as the head of the company in June this year. He updated the structure of TCS to increase the level of efficiency of using the business experience of its senior managers. Internal changes were also aimed at improving the practice of the company’s interaction with customers. Answering a question asked by journalists about whether the renewal of the structure helped to eliminate friction within the organization, K Krithivasan said that it takes time to understand the effectiveness of the solution in terms of opportunities for sustainable growth.
TCS and smaller competitors such as Infosys benefited from the period of the so-called dot-com boom in the late 1990s. These companies were able to offer the world cheap back office services. Since then, these firms have been suppliers of IT products for such large organizations as Apple, Merck & Co, Vodafone Group Plc, and PepsiCo. The activity of companies in a large-scale space has formed the Indian software services sector, the total value of which is currently estimated at more than $245 billion.
The traditional outsourcing business is facing the problem of margin limitation due to fears of a global recession. IT companies operating in India, against the background of unfavorable external circumstances, rely on large amounts of information, analytics, artificial intelligence, machine learning, and cloud technologies to provide customers with assistance in transforming their legacy business and create a kind of base for competition with startups with the potential for rapid growth.
K Krithivasan told reporters that the company he heads should be more involved in the projects of spheres that businesses invest in as part of an effort to create conditions for a successful future. He said that TCS’s strategy for the near future provides for expanding opportunities to be more active in advanced industries.
In May, TCS announced a partnership with Google. As part of this cooperation, the Indian company declared its intention to offer its Vertex AI cloud machine intelligence services for the Model Garden. Also in the space of this partnership, TCS provides solutions for its customers. The company’s cooperation with the technology giant was announced, as reported in May by the Indian media, amid skepticism about the integration of generative artificial intelligence into the corporate sector.
TCS believes that it is well-positioned to develop innovative enterprise-level solutions using machine intelligence. In the spring, the company announced that partnering with Google would create value for customers. TCS invests in assets, frameworks, and talent to leverage AI capabilities to drive growth for the consumers of its products.
As we have reported earlier, Bank of America Predicts Significant Economic Impact of AI.