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Microsoft's biggest India data center on track to go live in mid-2026, executive says
Adds graphic
By Aditya Soni and Abhirami G
May 19 (Reuters) - Microsoft's MSFT.O biggest data center in India is on track to open by mid-2026, its country head said on Tuesday, as the tech giant spends heavily to bolster its position in one of the world's largest markets for artificial intelligence services.
There's "massive demand" for Azure cloud services and the $30-a-month Copilot 365 AI assistant in the country, Puneet Chandok, president, Microsoft India and South Asia, told Reuters.
Like rivals Alphabet GOOGL.O and Amazon AMZN.O, Microsoft sees India as a potentially profitable market for AI thanks to its more than 1 billion internet users and deep tech talent.
Tapping that market is crucial as it looks to prove to investors that its massive bet on AI will pay off.
The company announced late last year that it would invest $17.5 billion in India, its biggest outlay in Asia, on top of the $3 billion pledged at the start of 2025.
That includes a new data center in the southern tech hub of Hyderabad, where Microsoft already has a significant presence.
"We are the ones who are bringing this to life quickly, the fastest out of the gates," Chandok said of the company's data center build-out, adding that the Hyderabad facility would be its biggest in India without disclosing exact capacity.
The new capacity will serve a growing customer base for AI services in India. Microsoft counts IT giants Infosys INFY.NS, Cognizant CTSH.O and Tata Consultancy Services TCS.NS among Copilot customers, with about 50,000 licenses each.
Chandok also said the India operations are contributing to AI features Microsoft is rolling out globally. The company employs more than 22,000 people in the country across cities.
Hiring staff to develop the features is getting tougher as demand exceeds supply, causing a "war for talent," Chandok said.
"The challenges in India are the same as everywhere else in the world."
Big Tech's big splurge https://reut.rs/4kfOwGh
Cloud wars: American tech giants compete for AI demand https://reut.rs/48t380B
(Reporting by Aditya Soni and Abhirami G in Bengaluru; Editing by Anil D'Silva)
Adds graphic
By Aditya Soni and Abhirami G
May 19 (Reuters) - Microsoft's MSFT.O biggest data center in India is on track to open by mid-2026, its country head said on Tuesday, as the tech giant spends heavily to bolster its position in one of the world's largest markets for artificial intelligence services.
There's "massive demand" for Azure cloud services and the $30-a-month Copilot 365 AI assistant in the country, Puneet Chandok, president, Microsoft India and South Asia, told Reuters.
Like rivals Alphabet GOOGL.O and Amazon AMZN.O, Microsoft sees India as a potentially profitable market for AI thanks to its more than 1 billion internet users and deep tech talent.
Tapping that market is crucial as it looks to prove to investors that its massive bet on AI will pay off.
The company announced late last year that it would invest $17.5 billion in India, its biggest outlay in Asia, on top of the $3 billion pledged at the start of 2025.
That includes a new data center in the southern tech hub of Hyderabad, where Microsoft already has a significant presence.
"We are the ones who are bringing this to life quickly, the fastest out of the gates," Chandok said of the company's data center build-out, adding that the Hyderabad facility would be its biggest in India without disclosing exact capacity.
The new capacity will serve a growing customer base for AI services in India. Microsoft counts IT giants Infosys INFY.NS, Cognizant CTSH.O and Tata Consultancy Services TCS.NS among Copilot customers, with about 50,000 licenses each.
Chandok also said the India operations are contributing to AI features Microsoft is rolling out globally. The company employs more than 22,000 people in the country across cities.
Hiring staff to develop the features is getting tougher as demand exceeds supply, causing a "war for talent," Chandok said.
"The challenges in India are the same as everywhere else in the world."
Big Tech's big splurge https://reut.rs/4kfOwGh
Cloud wars: American tech giants compete for AI demand https://reut.rs/48t380B
(Reporting by Aditya Soni and Abhirami G in Bengaluru; Editing by Anil D'Silva)
EXPLAINER-Why India’s Tata Sons is under pressure to list as trust divisions emerge
Updates to add state charity commissioner's order
By Jayshree P Upadhyay and Gopika Gopakumar
MUMBAI, May 16 (Reuters) - India's Tata Sons, the umbrella organisation for 31 companies including TCS TCS.NS, Tata Motors TAMO.NS and Tata Steel TISC.NS, is facing pressure to go public, even as the charitable trusts controlling two-thirds of the conglomerate grapple with internal differences.
Until now, Tata Sons has remained unlisted. But pressure to list is mounting from internal stakeholders, including its second largest shareholder, the Shapoorji Pallonji (SP) Group. Rules from the Reserve Bank of India may also require it to list unless an exemption is secured.
WHAT IS THE STRUCTURE OF THE TATA GROUP?
The 108-year-old salt-to-steel conglomerate is uniquely structured, where a combine of philanthropic organisations broadly known as the Tata Trusts holds 66% in Tata Sons. Debt-ridden construction and infrastructure conglomerate SP Group holds 18.4% of the company.
The Tata Trusts comprise 13 entities, seven of which directly hold shares in Tata Sons. The board of Tata Trusts consists of six trustees drawn from these entities.
Noel Tata, scion of the founding family, is the current chairman of Tata Trusts and is a director on the Tata Sons board.
WHO WANTS TATA SONS TO LIST?
Pressure for listing is coming from multiple quarters.
At least two of the six Tata trustees - Venu Srinivasan and Vijay Singh - have supported the listing of Tata Sons in media interviews, saying expansion, especially into new areas like semiconductors, will require large capital that cannot be generated internally.
The SP Group wants a listing so it can monetise or exit its holding, which is not freely transferable in the current structure. But the SP group is not represented among the trustees.
The key pressure is regulatory, stemming from RBI rules requiring large non-bank lenders above certain asset thresholds or with public funds to list.
WHAT ARE THE RBI RULES AND WHY DO THEY APPLY TO TATA SONS?
As the holding company of a number of businesses, Tata Sons is classified as a core investment company, which falls under the RBI's regulations.
Revised rules issued last month state that companies with assets exceeding 1 trillion rupees ($10.45 billion), or those with direct or indirect access to public funds, must list.
As of March 2025, Tata Sons' standalone assets stood at 1.75 trillion rupees.
The RBI retains discretion to determine which firms can be exempt from listing.
HAS RBI CLARIFIED ITS STANCE?
While analysts and legal experts say the revised rules make it harder for Tata Sons to remain private, the RBI has not publicly stated its position.
A request by Tata Sons for exemption is still under review. The company has reduced borrowings in an effort to avoid listing, but it remains unclear if that will suffice.
WHO IS OPPOSING THE LISTING?
Noel Tata has not made public comments, but has privately opposed converting Tata Sons into a listed entity. Media reports say he and other trustees unanimously opposed listing last year and asked the Tata Sons' chairman to engage with the RBI.
THE ISSUES AT TATA TRUSTS
India's Maharashtra state charity commissioner has ordered Tata Trusts to defer its board meeting after complaints triggered an inquiry into the trusts' governance. One of the complainants was Venu Srinivasan, a senior trustee at Tata Trusts.
On May 16, the boards of two key trusts — Sir Dorabji Tata Trust and Sir Ratan Tata Trust — which together hold over 50% of Tata Sons, were due to meet.
A central agenda item was to be the discussion of the RBI rules and their implications for a potential listing.
Additional items included increasing the Tata Trusts’ representation on the Tata Sons board, the reappointment of its chairman, and a review of Tata Sons’ performance.
The board meeting, the first since the RBI's rules were revised, was being keenly watched by the street for differences within the trustees on the listing of Tata Sons and how it may play out.
Under the Trusts' governance norms, resolutions are passed if a majority of trustees vote in favour. Therefore, if a majority of trustees support the proposal to list Tata Sons, the company would have to initiate the listing process.
(Reporting by Jayshree P Upadhyay and Gopika Gopakumar in Mumbai; Editing by Ira Dugal, Raju Gopalakrishnan and Muralikumar Anantharaman)
((Jayshree.Pyasi@thomsonreuters.com; 9920092491; Reuters Messaging: Twitter: @jaysh88))
Updates to add state charity commissioner's order
By Jayshree P Upadhyay and Gopika Gopakumar
MUMBAI, May 16 (Reuters) - India's Tata Sons, the umbrella organisation for 31 companies including TCS TCS.NS, Tata Motors TAMO.NS and Tata Steel TISC.NS, is facing pressure to go public, even as the charitable trusts controlling two-thirds of the conglomerate grapple with internal differences.
Until now, Tata Sons has remained unlisted. But pressure to list is mounting from internal stakeholders, including its second largest shareholder, the Shapoorji Pallonji (SP) Group. Rules from the Reserve Bank of India may also require it to list unless an exemption is secured.
WHAT IS THE STRUCTURE OF THE TATA GROUP?
The 108-year-old salt-to-steel conglomerate is uniquely structured, where a combine of philanthropic organisations broadly known as the Tata Trusts holds 66% in Tata Sons. Debt-ridden construction and infrastructure conglomerate SP Group holds 18.4% of the company.
The Tata Trusts comprise 13 entities, seven of which directly hold shares in Tata Sons. The board of Tata Trusts consists of six trustees drawn from these entities.
Noel Tata, scion of the founding family, is the current chairman of Tata Trusts and is a director on the Tata Sons board.
WHO WANTS TATA SONS TO LIST?
Pressure for listing is coming from multiple quarters.
At least two of the six Tata trustees - Venu Srinivasan and Vijay Singh - have supported the listing of Tata Sons in media interviews, saying expansion, especially into new areas like semiconductors, will require large capital that cannot be generated internally.
The SP Group wants a listing so it can monetise or exit its holding, which is not freely transferable in the current structure. But the SP group is not represented among the trustees.
The key pressure is regulatory, stemming from RBI rules requiring large non-bank lenders above certain asset thresholds or with public funds to list.
WHAT ARE THE RBI RULES AND WHY DO THEY APPLY TO TATA SONS?
As the holding company of a number of businesses, Tata Sons is classified as a core investment company, which falls under the RBI's regulations.
Revised rules issued last month state that companies with assets exceeding 1 trillion rupees ($10.45 billion), or those with direct or indirect access to public funds, must list.
As of March 2025, Tata Sons' standalone assets stood at 1.75 trillion rupees.
The RBI retains discretion to determine which firms can be exempt from listing.
HAS RBI CLARIFIED ITS STANCE?
While analysts and legal experts say the revised rules make it harder for Tata Sons to remain private, the RBI has not publicly stated its position.
A request by Tata Sons for exemption is still under review. The company has reduced borrowings in an effort to avoid listing, but it remains unclear if that will suffice.
WHO IS OPPOSING THE LISTING?
Noel Tata has not made public comments, but has privately opposed converting Tata Sons into a listed entity. Media reports say he and other trustees unanimously opposed listing last year and asked the Tata Sons' chairman to engage with the RBI.
THE ISSUES AT TATA TRUSTS
India's Maharashtra state charity commissioner has ordered Tata Trusts to defer its board meeting after complaints triggered an inquiry into the trusts' governance. One of the complainants was Venu Srinivasan, a senior trustee at Tata Trusts.
On May 16, the boards of two key trusts — Sir Dorabji Tata Trust and Sir Ratan Tata Trust — which together hold over 50% of Tata Sons, were due to meet.
A central agenda item was to be the discussion of the RBI rules and their implications for a potential listing.
Additional items included increasing the Tata Trusts’ representation on the Tata Sons board, the reappointment of its chairman, and a review of Tata Sons’ performance.
The board meeting, the first since the RBI's rules were revised, was being keenly watched by the street for differences within the trustees on the listing of Tata Sons and how it may play out.
Under the Trusts' governance norms, resolutions are passed if a majority of trustees vote in favour. Therefore, if a majority of trustees support the proposal to list Tata Sons, the company would have to initiate the listing process.
(Reporting by Jayshree P Upadhyay and Gopika Gopakumar in Mumbai; Editing by Ira Dugal, Raju Gopalakrishnan and Muralikumar Anantharaman)
((Jayshree.Pyasi@thomsonreuters.com; 9920092491; Reuters Messaging: Twitter: @jaysh88))
EXPLAINER-Why India's Tata Sons is facing pressure to list
By Jayshree P Upadhyay and Gopika Gopakumar
MUMBAI, May 15 (Reuters) - Tata Sons, the holding company of 31 group companies including TCS TCS.NS, Tata Motors TAMO.NS and Tata Steel TISC.NS, is facing pressure to go public - a discussion likely to come up at a board meeting on Saturday of two trusts that are major shareholders.
Until now, Tata Sons has remained unlisted. But there is now pressure to list from internal stakeholders, including its second largest shareholder, the Shapoorji Paloonji (SP) Group. Rules from the Reserve Bank of India may also require them to list unless they can secure an exemption.
WHAT IS THE STRUCTURE OF THE TATA GROUP?
The 108-year old salt-to-steel conglomerate is uniquely structured, where a combine of philanthropic organisations broadly known as the Tata Trusts hold 66% in Tata Sons. Debt ridden-construction and infrastructure conglomerate SP Group holds 18.4% of the company.
The Tata Trusts comprise 13 entities, seven of which directly hold shares in Tata Sons. The board of Tata Trusts consists of six trustees drawn from these entities.
Noel Tata, scion of the founding family, is the current chairman of Tata Trusts and is a director on the Tata Sons board.
WHO WANTS TATA SONS TO LIST?
Pressure for listing is coming from multiple quarters.
At least two of the six Tata trustees - Venu Srinivasan and Vijay Singh - have supported the listing of Tata Sons in media interviews, saying expansion, especially into new areas like semiconductors, will require large capital that cannot be generated internally.
The SP Group wants a listing so it can monetise or exit its holding, which is not freely transferable in the current structure. But the SP group is not represented among the trustees.
The key pressure is regulatory, stemming from RBI rules requiring large non-bank lenders above certain asset thresholds or with public funds to list.
WHAT ARE THE RBI RULES AND WHY DO THEY APPLY TO TATA SONS?
As the holding company of a number of businesses, Tata Sons is classified as a core investment company, which falls under the RBI's regulations.
Revised rules issued last month state that companies with assets exceeding 1 trillion rupees ($10.45 billion), or those with direct or indirect access to public funds, must list.
As of March 2025, Tata Sons' standalone assets stood at 1.75 trillion rupees.
The RBI retains discretion to determine which firms can be exempt from listing.
HAS RBI CLARIFIED ITS STANCE
While analysts and legal experts say the revised rules make it harder for Tata Sons to remain private, the RBI has not publicly stated its position.
A request by Tata Sons for exemption is still under review. The company has reduced borrowings in an effort to avoid listing, but it remains unclear if that will suffice.
WHO IS OPPOSING THE LISTING?
Noel Tata has not made public comments, but has privately opposed converting Tata Sons into a listed entity. Media reports say he and other trustees unanimously opposed listing last year and asked the Tata Sons' chairman to engage with the RBI.
WHAT WILL HAPPEN AT THE SATURDAY BOARD MEET?
On Saturday, the boards of two key trusts — Sir Dorabji Tata Trust and Sir Ratan Tata Trust — which together hold over 50% of Tata Sons, will meet.
A central agenda item is discussion of the RBI rules and their implications for a potential listing.
Additional items include increasing the Tata Trusts’ representation on the Tata Sons board, the reappointment of its chairman, and a review of Tata Sons’ performance.
The board meeting, first since the RBI's rules were revised, is being keenly watched by the street for differences within the trustees on the listing of Tata Sons and how it may play out.
Under the Trusts' governance norms, resolutions are passed if a majority of trustees vote in favour. Therefore, if a majority of trustees support the proposal to list Tata Sons, the company would have to initiate the listing process.
($1 = 95.7150 Indian rupees)
(Reporting by Jayshree P Upadhyay and Gopika Gopakumar in Mumbai, editing by Ira Dugal and Raju Gopalakrishnan)
((Jayshree.Pyasi@thomsonreuters.com; 9920092491; Reuters Messaging: Twitter: @jaysh88))
By Jayshree P Upadhyay and Gopika Gopakumar
MUMBAI, May 15 (Reuters) - Tata Sons, the holding company of 31 group companies including TCS TCS.NS, Tata Motors TAMO.NS and Tata Steel TISC.NS, is facing pressure to go public - a discussion likely to come up at a board meeting on Saturday of two trusts that are major shareholders.
Until now, Tata Sons has remained unlisted. But there is now pressure to list from internal stakeholders, including its second largest shareholder, the Shapoorji Paloonji (SP) Group. Rules from the Reserve Bank of India may also require them to list unless they can secure an exemption.
WHAT IS THE STRUCTURE OF THE TATA GROUP?
The 108-year old salt-to-steel conglomerate is uniquely structured, where a combine of philanthropic organisations broadly known as the Tata Trusts hold 66% in Tata Sons. Debt ridden-construction and infrastructure conglomerate SP Group holds 18.4% of the company.
The Tata Trusts comprise 13 entities, seven of which directly hold shares in Tata Sons. The board of Tata Trusts consists of six trustees drawn from these entities.
Noel Tata, scion of the founding family, is the current chairman of Tata Trusts and is a director on the Tata Sons board.
WHO WANTS TATA SONS TO LIST?
Pressure for listing is coming from multiple quarters.
At least two of the six Tata trustees - Venu Srinivasan and Vijay Singh - have supported the listing of Tata Sons in media interviews, saying expansion, especially into new areas like semiconductors, will require large capital that cannot be generated internally.
The SP Group wants a listing so it can monetise or exit its holding, which is not freely transferable in the current structure. But the SP group is not represented among the trustees.
The key pressure is regulatory, stemming from RBI rules requiring large non-bank lenders above certain asset thresholds or with public funds to list.
WHAT ARE THE RBI RULES AND WHY DO THEY APPLY TO TATA SONS?
As the holding company of a number of businesses, Tata Sons is classified as a core investment company, which falls under the RBI's regulations.
Revised rules issued last month state that companies with assets exceeding 1 trillion rupees ($10.45 billion), or those with direct or indirect access to public funds, must list.
As of March 2025, Tata Sons' standalone assets stood at 1.75 trillion rupees.
The RBI retains discretion to determine which firms can be exempt from listing.
HAS RBI CLARIFIED ITS STANCE
While analysts and legal experts say the revised rules make it harder for Tata Sons to remain private, the RBI has not publicly stated its position.
A request by Tata Sons for exemption is still under review. The company has reduced borrowings in an effort to avoid listing, but it remains unclear if that will suffice.
WHO IS OPPOSING THE LISTING?
Noel Tata has not made public comments, but has privately opposed converting Tata Sons into a listed entity. Media reports say he and other trustees unanimously opposed listing last year and asked the Tata Sons' chairman to engage with the RBI.
WHAT WILL HAPPEN AT THE SATURDAY BOARD MEET?
On Saturday, the boards of two key trusts — Sir Dorabji Tata Trust and Sir Ratan Tata Trust — which together hold over 50% of Tata Sons, will meet.
A central agenda item is discussion of the RBI rules and their implications for a potential listing.
Additional items include increasing the Tata Trusts’ representation on the Tata Sons board, the reappointment of its chairman, and a review of Tata Sons’ performance.
The board meeting, first since the RBI's rules were revised, is being keenly watched by the street for differences within the trustees on the listing of Tata Sons and how it may play out.
Under the Trusts' governance norms, resolutions are passed if a majority of trustees vote in favour. Therefore, if a majority of trustees support the proposal to list Tata Sons, the company would have to initiate the listing process.
($1 = 95.7150 Indian rupees)
(Reporting by Jayshree P Upadhyay and Gopika Gopakumar in Mumbai, editing by Ira Dugal and Raju Gopalakrishnan)
((Jayshree.Pyasi@thomsonreuters.com; 9920092491; Reuters Messaging: Twitter: @jaysh88))
BREAKINGVIEWS-India is patient zero for AI job loss onslaught: podcast
The hosts are Reuters Breakingviews columnists. The opinions expressed are their own.
By Aimee Donnellan and Una Galani
DUBLIN/HONG KONG, May 14 (Reuters Breakingviews) - Follow on Apple or Spotify. Listen on the Reuters app. Read the episode transcript.
The country’s $4 trln consumer-led economy is already seeing a slowdown in hiring and firms like Oracle are laying off staff. In this Viewsroom podcast, Breakingviews columnists explain why India is so vulnerable and how the situation may play out elsewhere.
Follow Aimee Donnellan on LinkedIn.
Follow Una Galani on LinkedIn and X.
FURTHER READING
AI job shock risks throttling India’s consumption
Poll wins spotlight India’s next spending crisis
India IT needs new model to code past AI crunch
Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt-out of targeted advertising.
(Editing by Sheryl Peña and Gregory Garner; Production by Aditya Srivastav)
The hosts are Reuters Breakingviews columnists. The opinions expressed are their own.
By Aimee Donnellan and Una Galani
DUBLIN/HONG KONG, May 14 (Reuters Breakingviews) - Follow on Apple or Spotify. Listen on the Reuters app. Read the episode transcript.
The country’s $4 trln consumer-led economy is already seeing a slowdown in hiring and firms like Oracle are laying off staff. In this Viewsroom podcast, Breakingviews columnists explain why India is so vulnerable and how the situation may play out elsewhere.
Follow Aimee Donnellan on LinkedIn.
Follow Una Galani on LinkedIn and X.
FURTHER READING
AI job shock risks throttling India’s consumption
Poll wins spotlight India’s next spending crisis
India IT needs new model to code past AI crunch
Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt-out of targeted advertising.
(Editing by Sheryl Peña and Gregory Garner; Production by Aditya Srivastav)
BREAKINGVIEWS-India's forex-saving push is late, and pre-emptive
The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to fix grammatical error in the first paragraph.
By Shritama Bose
MUMBAI, May 13 (Reuters Breakingviews) - No people whose word for 'yesterday' is the same as their word for 'tomorrow' can be said to have a firm grip on the time, Salman Rushdie once wrote in a friendly dig at Indians in reference to the Hindi language. Yet by urging fellow citizens to stay home, shun gold purchases, halve fertiliser use, and skip overseas travel including destination weddings, Prime Minister Narendra Modi is deliberately playing catch-up and being pre-emptive at once.
The Indian leader's dramatic appeal, made first on Sunday and repeated a day later, marks a belated shift into austerity mode. In countries from Pakistan to Thailand remote-working mandates and fuel rationing kicked in within weeks of war breaking out in the Middle East. New Delhi held off but things are abruptly changing following the conclusion of key state elections that underscored Modi's popularity.
It paints a picture of crisis management seemingly incongruous with India's comfortable foreign exchange reserves relative to historical levels: the central bank's $691 billion warchest is equivalent to 11 months of imports, higher than the 2013 level of under seven months.
The sense of premature panic is reinforced by movements at the central bank. It is also mulling reviving a scheme for India's diaspora to open foreign currency deposits rolled out in 2013 when the taper tantrum sparked huge capital flows out of India, Reuters reported citing unnamed sources. Another measure could be to ease the tax burden on foreign buyers of Indian bonds, the report added.
New Delhi may be acting early precisely to avoid a repeat of past crises. That's sensible. Another reason to look sharp is that usable reserves adjusted for the Reserve Bank of India's net short position in the currency forwards market are lower, sufficing for imports for just under nine months, analysts at UBS estimate. And a growing share of those reserves are attributable to gold, less useful in a quick pinch than hard currency.
Modi's call to action may also betray a fear about how quickly advances in artificial intelligence may crush India's $418 billion of services exports, much of it linked to outsourcers' earnings. Tata Consultancy Services TCS.NS reported a rare drop in U.S. dollar revenue for the last financial year as coding tools by Anthropic and others compress growth across the industry.
Throw in record portfolio outflows, muted net foreign direct investment and a potential fall in remittances from the Gulf - home to some 10 million Indian workers - and the South Asian country looks caught in a perfect storm that could ruin its external balances and macro-economic stability. The rupee has lost over 6% of its value against the U.S. dollar this year.
Modi's appeal risks further cooling sentiment toward India and, if ineffective, may be a precursor to more extreme steps, such as a tightening of a $250,000 limit on overseas spending or an outright ban on imports of gold and electronics, goods which New Delhi sees as 'non-essential'. For now, India's leader is just asking.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
India is considering emergency steps to shore up foreign exchange reserves, including curbing non-essential imports like gold and electronic goods, and hiking fuel prices, to help cushion the economy from the fallout of the Iran war, Bloomberg reported on May 11, citing unnamed people familiar with the matter.
Indian Prime Minister Narendra Modi on May 10 urged a spate of measures including fuel conservation, work-from-home practices and limits on travel and imports, as a surge in global energy prices puts pressure on the country's foreign exchange reserves.
"In the current situation, we must place great emphasis on saving foreign exchange," he said. Modi asked Indians to avoid buying gold and to cut non-essential overseas travel for at least a year while urging farmers to cut fertiliser use by as much as half.
The Reserve Bank of India is studying ways to mobilise dollar inflows to bolster its foreign exchange buffers and cushion rising pressure on the rupee from a spike in oil prices driven by the Iran war, Reuters reported on May 4, citing three unnamed sources familiar with the discussions.
Reviving a mechanism to draw in dollar deposits from non-resident Indians and removing withholding tax on overseas government bond investors are among the measures being considered, the report added.
India’s external indicators have strengthened since the taper tantrum https://www.reuters.com/graphics/BRV-BRV/gkplkebjnvb/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to fix grammatical error in the first paragraph.
By Shritama Bose
MUMBAI, May 13 (Reuters Breakingviews) - No people whose word for 'yesterday' is the same as their word for 'tomorrow' can be said to have a firm grip on the time, Salman Rushdie once wrote in a friendly dig at Indians in reference to the Hindi language. Yet by urging fellow citizens to stay home, shun gold purchases, halve fertiliser use, and skip overseas travel including destination weddings, Prime Minister Narendra Modi is deliberately playing catch-up and being pre-emptive at once.
The Indian leader's dramatic appeal, made first on Sunday and repeated a day later, marks a belated shift into austerity mode. In countries from Pakistan to Thailand remote-working mandates and fuel rationing kicked in within weeks of war breaking out in the Middle East. New Delhi held off but things are abruptly changing following the conclusion of key state elections that underscored Modi's popularity.
It paints a picture of crisis management seemingly incongruous with India's comfortable foreign exchange reserves relative to historical levels: the central bank's $691 billion warchest is equivalent to 11 months of imports, higher than the 2013 level of under seven months.
The sense of premature panic is reinforced by movements at the central bank. It is also mulling reviving a scheme for India's diaspora to open foreign currency deposits rolled out in 2013 when the taper tantrum sparked huge capital flows out of India, Reuters reported citing unnamed sources. Another measure could be to ease the tax burden on foreign buyers of Indian bonds, the report added.
New Delhi may be acting early precisely to avoid a repeat of past crises. That's sensible. Another reason to look sharp is that usable reserves adjusted for the Reserve Bank of India's net short position in the currency forwards market are lower, sufficing for imports for just under nine months, analysts at UBS estimate. And a growing share of those reserves are attributable to gold, less useful in a quick pinch than hard currency.
Modi's call to action may also betray a fear about how quickly advances in artificial intelligence may crush India's $418 billion of services exports, much of it linked to outsourcers' earnings. Tata Consultancy Services TCS.NS reported a rare drop in U.S. dollar revenue for the last financial year as coding tools by Anthropic and others compress growth across the industry.
Throw in record portfolio outflows, muted net foreign direct investment and a potential fall in remittances from the Gulf - home to some 10 million Indian workers - and the South Asian country looks caught in a perfect storm that could ruin its external balances and macro-economic stability. The rupee has lost over 6% of its value against the U.S. dollar this year.
Modi's appeal risks further cooling sentiment toward India and, if ineffective, may be a precursor to more extreme steps, such as a tightening of a $250,000 limit on overseas spending or an outright ban on imports of gold and electronics, goods which New Delhi sees as 'non-essential'. For now, India's leader is just asking.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
India is considering emergency steps to shore up foreign exchange reserves, including curbing non-essential imports like gold and electronic goods, and hiking fuel prices, to help cushion the economy from the fallout of the Iran war, Bloomberg reported on May 11, citing unnamed people familiar with the matter.
Indian Prime Minister Narendra Modi on May 10 urged a spate of measures including fuel conservation, work-from-home practices and limits on travel and imports, as a surge in global energy prices puts pressure on the country's foreign exchange reserves.
"In the current situation, we must place great emphasis on saving foreign exchange," he said. Modi asked Indians to avoid buying gold and to cut non-essential overseas travel for at least a year while urging farmers to cut fertiliser use by as much as half.
The Reserve Bank of India is studying ways to mobilise dollar inflows to bolster its foreign exchange buffers and cushion rising pressure on the rupee from a spike in oil prices driven by the Iran war, Reuters reported on May 4, citing three unnamed sources familiar with the discussions.
Reviving a mechanism to draw in dollar deposits from non-resident Indians and removing withholding tax on overseas government bond investors are among the measures being considered, the report added.
India’s external indicators have strengthened since the taper tantrum https://www.reuters.com/graphics/BRV-BRV/gkplkebjnvb/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))
TCS Says Co And Rezolve AI Forge Partnership To Scale Agentic Commerce Globally
May 12 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - CO AND REZOLVE AI FORGE PARTNERSHIP TO SCALE AGENTIC COMMERCE GLOBALLY
Further company coverage: TCS.NS
May 12 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - CO AND REZOLVE AI FORGE PARTNERSHIP TO SCALE AGENTIC COMMERCE GLOBALLY
Further company coverage: TCS.NS
Indian panel alleges 'toxic workplace environment' at TCS back office
Panel finds TCS did not comply with anti-sexual harassment law
Panel says female employees were bullied and sexually harassed
TCS previously suspended employees and is probing the issue
By Arpan Chaturvedi and Aditya Kalra
NEW DELHI, May 11 (Reuters) - India's National Commission for Women said on Monday it had found a "toxic workplace environment" at a Tata Consultancy Services TCS.NS back office, which it added also failed to comply with the country's anti-sexual harassment law.
TCS, which did not immediately respond to a request for comment on the findings published on Monday, has previously said it is cooperating with Indian authorities, who have arrested at least six employees over the sexual harassment allegations.
The case has attracted nationwide attention as it involves India's top software-services exporter, which has annual revenue of $30 billion and is part of the salt-to-aviation Tata Group.
TCS has in recent weeks launched an internal investigation and suspended staff after police began looking into allegations that some staff at the company's back office in Nashik, western India, had sexually harassed women and that some employees were pressured to convert from Hinduism to Islam.
The National Commission for Women, India's federal body for women's rights, said on Monday it visited the facility last month and interviewed staff. It said it found "pervasive harassment", "systemic bullying" and that some staff "used to bully female employees by denigrating Hindu mythology".
"This was a typical case of sexual harassment at the workplace, involving bullying of female employees, stalking, and demeaning conduct," the commission said in a statement.
The Nashik unit, with around 150 staff, was primarily engaged in call centre work for TCS, which operates across 55 countries through its 584,000 employees and whose clients include many large global companies.
The commission also said it found "zero compliance" with India's law on the prevention of sexual harassment of women in the workplace.
"It is more than clear that this inaction on the part of the organization was not just a compliance deficit but was a governance deficit as well," it added.
(Reporting by Arpan Chaturvedi and Aditya Kalra; Additional reporting by Sai Ishwar; Editing by Alexander Smith)
Panel finds TCS did not comply with anti-sexual harassment law
Panel says female employees were bullied and sexually harassed
TCS previously suspended employees and is probing the issue
By Arpan Chaturvedi and Aditya Kalra
NEW DELHI, May 11 (Reuters) - India's National Commission for Women said on Monday it had found a "toxic workplace environment" at a Tata Consultancy Services TCS.NS back office, which it added also failed to comply with the country's anti-sexual harassment law.
TCS, which did not immediately respond to a request for comment on the findings published on Monday, has previously said it is cooperating with Indian authorities, who have arrested at least six employees over the sexual harassment allegations.
The case has attracted nationwide attention as it involves India's top software-services exporter, which has annual revenue of $30 billion and is part of the salt-to-aviation Tata Group.
TCS has in recent weeks launched an internal investigation and suspended staff after police began looking into allegations that some staff at the company's back office in Nashik, western India, had sexually harassed women and that some employees were pressured to convert from Hinduism to Islam.
The National Commission for Women, India's federal body for women's rights, said on Monday it visited the facility last month and interviewed staff. It said it found "pervasive harassment", "systemic bullying" and that some staff "used to bully female employees by denigrating Hindu mythology".
"This was a typical case of sexual harassment at the workplace, involving bullying of female employees, stalking, and demeaning conduct," the commission said in a statement.
The Nashik unit, with around 150 staff, was primarily engaged in call centre work for TCS, which operates across 55 countries through its 584,000 employees and whose clients include many large global companies.
The commission also said it found "zero compliance" with India's law on the prevention of sexual harassment of women in the workplace.
"It is more than clear that this inaction on the part of the organization was not just a compliance deficit but was a governance deficit as well," it added.
(Reporting by Arpan Chaturvedi and Aditya Kalra; Additional reporting by Sai Ishwar; Editing by Alexander Smith)
Crowdstrike Expands Project Quiltworks, The Cybersecurity Coalition For Securing Frontier Ai Risk
May 5 (Reuters) - CrowdStrike Holdings Inc CRWD.O:
CROWDSTRIKE EXPANDS PROJECT QUILTWORKS, THE CYBERSECURITY COALITION FOR SECURING FRONTIER AI RISK
CROWDSTRIKE - ARMADIN, COGNIZANT, HCLTECH, INFOSYS, KPMG, NTT DATA, TCS, WIPRO JOIN QUILTWORKS COALITION
CROWDSTRIKE - INTEGRATES ANTHROPIC OPUS 4.7 AI INTO FALCON PLATFORM
Source text: ID:nBw1WDjhXa
Further company coverage: CRWD.O
May 5 (Reuters) - CrowdStrike Holdings Inc CRWD.O:
CROWDSTRIKE EXPANDS PROJECT QUILTWORKS, THE CYBERSECURITY COALITION FOR SECURING FRONTIER AI RISK
CROWDSTRIKE - ARMADIN, COGNIZANT, HCLTECH, INFOSYS, KPMG, NTT DATA, TCS, WIPRO JOIN QUILTWORKS COALITION
CROWDSTRIKE - INTEGRATES ANTHROPIC OPUS 4.7 AI INTO FALCON PLATFORM
Source text: ID:nBw1WDjhXa
Further company coverage: CRWD.O
BREAKINGVIEWS-AI job shock risks throttling India’s consumption
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, April 30 (Reuters Breakingviews) - The jobs crisis stirring in India’s vast outsourcing industry spells trouble for the country’s $4 trillion consumption-led economy. With the gap between household income and spending already widening, the consequences of the churn on finance and markets will be far-reaching.
White collar jobs are starting to disappear in the world’s services capital where many global firms employ thousands of staff in global capability centres that are responsible for everything from back-office functions to fraud detection to critical research and development.
Following the launch of artificial intelligence tools by Anthropic and others that allow companies do the same amount of work with fewer people, Oracle ORCL.N laid off 10,000 workers, or one-fifth of its India workforce in March, and Amazon.com AMZN.O let go of 500 people in the country in January, the Economic Times reported, citing sources. It looks like just the beginning of the headcount reductions.
One executive of a global bank told Reuters Breakingviews their workforce in India could shrink by one-third. This could happen quickly within just one or two years because of the double digit attrition rates at offices of global firms in cities including Bengaluru, Gurugram and Pune. JPMorgan Chase JPM.N has a whopping 55,000 employees in the country, which equals about one-fifth of its total workforce and includes one-third of all its technologists; HSBC’s HSBA.L 47,000 local employees make up 23% of its global headcount.
Then there is also “AI deflation” – the term Indian IT firms that typically lap up fresh graduates use to refer to slowing revenue growth. Annual revenue in U.S. dollar terms at industry leader Tata Consultancy Services TCS.NS shrunk for the year ended March 2026, marking the first decline since the $97 billion company's initial public offering in 2004.
Altogether, global capability centres and the IT sector employ up to 15 million people who anchor India’s middle class and whose jobs are under threat from generative AI, Bernstein analysts Venugopal Garre and Nikhil Arela said last week in an open letter to Prime Minister Narendra Modi.
Though this is a small fraction of India’s 616-million-strong workforce comprised mostly of swathes of informal and agricultural workers, the AI vulnerable cohort represents a sizeable chunk of the employed within the rising middle class. With fewer jobs, there will also be pressure on salaries for those who keep theirs.
For India, advances in generative AI are intensifying the intractable challenge of creating enough jobs in a country that skipped over the traditional manufacturing route and where 8 million people enter the workforce each year. Modi's push to drive manufacturing isn’t softening the blow much either, thanks to factory automation.
There are already signs that India’s world-beating 7.8% growth is decoupling from employment generation: New Delhi’s latest Economic Survey notes that since 2022 – the same year that OpenAI launched ChatGPT -- the labour intensity of output has marginally declined. That rupture will deepen unless workers upskill, the survey says, with the change coming “not in a single shock, but in a quiet, steady drift”.
This threatens a blow to spending on what people want, rather than what they need. Private consumption accounts for about 60% of GDP and the top 140 million Indians who on average each earn roughly $15,000 per annum, according to Blume Ventures, drive two-thirds of discretionary spending.
Any contraction in their incomes could force them to cut back, hitting sales of goods from new homes to cars and demand for experiences from dining out to live events. There will be a ripple effect too: Middle-class homes in India employ cooks, cleaners and drivers.
Demand for their services, and those of India’s vast gig economy servicing the middle class, would recede. That puts at risk earnings of carmakers, consumer groups and financial services providers which, together with Mukesh Ambani's Reliance Industries RELI.NS – the owner of India’s largest retailer - account for nearly 62% of the benchmark Nifty 50 index .NSEI. Sluggish consumption is already hurting some of them: small car sales slowed at Maruti Suzuki India MRTI.NS last year and Unilever's ULVR.L Indian unit has been grappling with weak urban demand.
A potential 30% reduction in the 15-million-strong outsourcing and global capability centre workforce over the next two years could shrink the top consuming class by about 5 million to 135 million.
Assuming Blume Ventures' annual income estimate of $15,000, this cohort's total spending power stands to fall by roughly $75 billion a year, assuming those people don't find other employment or sources of income. That's equivalent to 10% of the Nifty 50 constituents’ net sales of 71.3 trillion rupees ($755 billion) for the financial year ended March 2025, per data from the National Stock Exchange.
Overall household savings are already declining as indebtedness mounts: Indians saved barely 23% of their personal disposable income in the financial year to March 2025, according to an estimate by CLSA, down from nearly 30% two decades earlier. Debt as a share of disposable income surged to 55% from 31% over the same period.
While India’s household debt to GDP ratio is much lower than for most peer economies, meagre earnings mean Indians end up spending 13% of their income on repaying borrowings, higher than 8.5% for China and 8% for the US.
Much of what Indians borrow goes towards financing consumption rather than creating assets. Households are leveraging up to pay for everything from overseas vacations to weddings and smartphone purchases.
Such financing, which the Reserve Bank of India calls non-housing retail loans, makes up 55% of household obligations and is growing faster than mortgages. India's household debt to GDP ratio stands at 41.9%. If half of those borrowings are consumption-linked, it implies household discretionary debt amounts to roughly 21% of GDP. Apply that to India’s nominal GDP of 331 trillion rupees for 2024-25 and you have at risk loans worth 69 trillion rupees across the country’s banks and non-bank lenders.
This threatens the loan quality at financial institutions led by the $130 billion HDFC Bank HDBK.NS as well as lenders backed by global investors from Sumitomo Mitsui Financial 8316.T to Blackstone BX.N who are accelerating their expansion in India to tap retail credit demand.
The impact of AI on the global workforce may ultimately create more jobs. First, though, it may turn India’s already weak consumption and much-vaunted demographic dividend into a nightmare.
Follow Shritama Bose on LinkedIn and X.
Hiring in India's technology sector has tapered https://www.reuters.com/graphics/BRV-BRV/zgpollrgdvd/chart.png
Services account for well over half of India's output https://www.reuters.com/graphics/BRV-BRV/egpbeemrnvq/chart.png
Indians spend a large chunk of their income on servicing debt https://www.reuters.com/graphics/BRV-BRV/dwvkyyegdvm/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, April 30 (Reuters Breakingviews) - The jobs crisis stirring in India’s vast outsourcing industry spells trouble for the country’s $4 trillion consumption-led economy. With the gap between household income and spending already widening, the consequences of the churn on finance and markets will be far-reaching.
White collar jobs are starting to disappear in the world’s services capital where many global firms employ thousands of staff in global capability centres that are responsible for everything from back-office functions to fraud detection to critical research and development.
Following the launch of artificial intelligence tools by Anthropic and others that allow companies do the same amount of work with fewer people, Oracle ORCL.N laid off 10,000 workers, or one-fifth of its India workforce in March, and Amazon.com AMZN.O let go of 500 people in the country in January, the Economic Times reported, citing sources. It looks like just the beginning of the headcount reductions.
One executive of a global bank told Reuters Breakingviews their workforce in India could shrink by one-third. This could happen quickly within just one or two years because of the double digit attrition rates at offices of global firms in cities including Bengaluru, Gurugram and Pune. JPMorgan Chase JPM.N has a whopping 55,000 employees in the country, which equals about one-fifth of its total workforce and includes one-third of all its technologists; HSBC’s HSBA.L 47,000 local employees make up 23% of its global headcount.
Then there is also “AI deflation” – the term Indian IT firms that typically lap up fresh graduates use to refer to slowing revenue growth. Annual revenue in U.S. dollar terms at industry leader Tata Consultancy Services TCS.NS shrunk for the year ended March 2026, marking the first decline since the $97 billion company's initial public offering in 2004.
Altogether, global capability centres and the IT sector employ up to 15 million people who anchor India’s middle class and whose jobs are under threat from generative AI, Bernstein analysts Venugopal Garre and Nikhil Arela said last week in an open letter to Prime Minister Narendra Modi.
Though this is a small fraction of India’s 616-million-strong workforce comprised mostly of swathes of informal and agricultural workers, the AI vulnerable cohort represents a sizeable chunk of the employed within the rising middle class. With fewer jobs, there will also be pressure on salaries for those who keep theirs.
For India, advances in generative AI are intensifying the intractable challenge of creating enough jobs in a country that skipped over the traditional manufacturing route and where 8 million people enter the workforce each year. Modi's push to drive manufacturing isn’t softening the blow much either, thanks to factory automation.
There are already signs that India’s world-beating 7.8% growth is decoupling from employment generation: New Delhi’s latest Economic Survey notes that since 2022 – the same year that OpenAI launched ChatGPT -- the labour intensity of output has marginally declined. That rupture will deepen unless workers upskill, the survey says, with the change coming “not in a single shock, but in a quiet, steady drift”.
This threatens a blow to spending on what people want, rather than what they need. Private consumption accounts for about 60% of GDP and the top 140 million Indians who on average each earn roughly $15,000 per annum, according to Blume Ventures, drive two-thirds of discretionary spending.
Any contraction in their incomes could force them to cut back, hitting sales of goods from new homes to cars and demand for experiences from dining out to live events. There will be a ripple effect too: Middle-class homes in India employ cooks, cleaners and drivers.
Demand for their services, and those of India’s vast gig economy servicing the middle class, would recede. That puts at risk earnings of carmakers, consumer groups and financial services providers which, together with Mukesh Ambani's Reliance Industries RELI.NS – the owner of India’s largest retailer - account for nearly 62% of the benchmark Nifty 50 index .NSEI. Sluggish consumption is already hurting some of them: small car sales slowed at Maruti Suzuki India MRTI.NS last year and Unilever's ULVR.L Indian unit has been grappling with weak urban demand.
A potential 30% reduction in the 15-million-strong outsourcing and global capability centre workforce over the next two years could shrink the top consuming class by about 5 million to 135 million.
Assuming Blume Ventures' annual income estimate of $15,000, this cohort's total spending power stands to fall by roughly $75 billion a year, assuming those people don't find other employment or sources of income. That's equivalent to 10% of the Nifty 50 constituents’ net sales of 71.3 trillion rupees ($755 billion) for the financial year ended March 2025, per data from the National Stock Exchange.
Overall household savings are already declining as indebtedness mounts: Indians saved barely 23% of their personal disposable income in the financial year to March 2025, according to an estimate by CLSA, down from nearly 30% two decades earlier. Debt as a share of disposable income surged to 55% from 31% over the same period.
While India’s household debt to GDP ratio is much lower than for most peer economies, meagre earnings mean Indians end up spending 13% of their income on repaying borrowings, higher than 8.5% for China and 8% for the US.
Much of what Indians borrow goes towards financing consumption rather than creating assets. Households are leveraging up to pay for everything from overseas vacations to weddings and smartphone purchases.
Such financing, which the Reserve Bank of India calls non-housing retail loans, makes up 55% of household obligations and is growing faster than mortgages. India's household debt to GDP ratio stands at 41.9%. If half of those borrowings are consumption-linked, it implies household discretionary debt amounts to roughly 21% of GDP. Apply that to India’s nominal GDP of 331 trillion rupees for 2024-25 and you have at risk loans worth 69 trillion rupees across the country’s banks and non-bank lenders.
This threatens the loan quality at financial institutions led by the $130 billion HDFC Bank HDBK.NS as well as lenders backed by global investors from Sumitomo Mitsui Financial 8316.T to Blackstone BX.N who are accelerating their expansion in India to tap retail credit demand.
The impact of AI on the global workforce may ultimately create more jobs. First, though, it may turn India’s already weak consumption and much-vaunted demographic dividend into a nightmare.
Follow Shritama Bose on LinkedIn and X.
Hiring in India's technology sector has tapered https://www.reuters.com/graphics/BRV-BRV/zgpollrgdvd/chart.png
Services account for well over half of India's output https://www.reuters.com/graphics/BRV-BRV/egpbeemrnvq/chart.png
Indians spend a large chunk of their income on servicing debt https://www.reuters.com/graphics/BRV-BRV/dwvkyyegdvm/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))
BREAKINGVIEWS-AI job shock risks throttling India’s consumption
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, April 30 (Reuters Breakingviews) - The jobs crisis stirring in India’s vast outsourcing industry spells trouble for the country’s $4 trillion consumption-led economy. With the gap between household income and spending already widening, the consequences of the churn on finance and markets will be far-reaching.
White collar jobs are starting to disappear in the world’s services capital where many global firms employ thousands of staff in global capability centres that are responsible for everything from back-office functions to fraud detection to critical research and development.
Following the launch of artificial intelligence tools by Anthropic and others that allow companies do the same amount of work with fewer people, Oracle ORCL.N laid off 10,000 workers, or one-fifth of its India workforce in March, and Amazon.com AMZN.O let go of 500 people in the country in January, the Economic Times reported, citing sources. It looks like just the beginning of the headcount reductions.
One executive of a global bank told Reuters Breakingviews their workforce in India could shrink by one-third. This could happen quickly within just one or two years because of the double digit attrition rates at offices of global firms in cities including Bengaluru, Gurugram and Pune. JPMorgan Chase JPM.N has a whopping 55,000 employees in the country, which equals about one-fifth of its total workforce and includes one-third of all its technologists; HSBC’s HSBA.L 47,000 local employees make up 23% of its global headcount.
Then there is also “AI deflation” – the term Indian IT firms that typically lap up fresh graduates use to refer to slowing revenue growth. Annual revenue in U.S. dollar terms at industry leader Tata Consultancy Services TCS.NS shrunk for the year ended March 2026, marking the first decline since the $97 billion company's initial public offering in 2004.
Altogether, global capability centres and the IT sector employ up to 15 million people who anchor India’s middle class and whose jobs are under threat from generative AI, Bernstein analysts Venugopal Garre and Nikhil Arela said last week in an open letter to Prime Minister Narendra Modi.
Though this is a small fraction of India’s 616-million-strong workforce comprised mostly of swathes of informal and agricultural workers, the AI vulnerable cohort represents a sizeable chunk of the employed within the rising middle class. With fewer jobs, there will also be pressure on salaries for those who keep theirs.
For India, advances in generative AI are intensifying the intractable challenge of creating enough jobs in a country that skipped over the traditional manufacturing route and where 8 million people enter the workforce each year. Modi's push to drive manufacturing isn’t softening the blow much either, thanks to factory automation.
There are already signs that India’s world-beating 7.8% growth is decoupling from employment generation: New Delhi’s latest Economic Survey notes that since 2022 – the same year that OpenAI launched ChatGPT -- the labour intensity of output has marginally declined. That rupture will deepen unless workers upskill, the survey says, with the change coming “not in a single shock, but in a quiet, steady drift”.
This threatens a blow to spending on what people want, rather than what they need. Private consumption accounts for about 60% of GDP and the top 140 million Indians who on average each earn roughly $15,000 per annum, according to Blume Ventures, drive two-thirds of discretionary spending.
Any contraction in their incomes could force them to cut back, hitting sales of goods from new homes to cars and demand for experiences from dining out to live events. There will be a ripple effect too: Middle-class homes in India employ cooks, cleaners and drivers.
Demand for their services, and those of India’s vast gig economy servicing the middle class, would recede. That puts at risk earnings of carmakers, consumer groups and financial services providers which, together with Mukesh Ambani's Reliance Industries RELI.NS – the owner of India’s largest retailer - account for nearly 62% of the benchmark Nifty 50 index .NSEI. Sluggish consumption is already hurting some of them: small car sales slowed at Maruti Suzuki India MRTI.NS last year and Unilever's ULVR.L Indian unit has been grappling with weak urban demand.
A potential 30% reduction in the 15-million-strong outsourcing and global capability centre workforce over the next two years could shrink the top consuming class by about 5 million to 135 million.
Assuming Blume Ventures' annual income estimate of $15,000, this cohort's total spending power stands to fall by roughly $75 billion a year, assuming those people don't find other employment or sources of income. That's equivalent to 10% of the Nifty 50 constituents’ net sales of 71.3 trillion rupees ($755 billion) for the financial year ended March 2025, per data from the National Stock Exchange.
Overall household savings are already declining as indebtedness mounts: Indians saved barely 23% of their personal disposable income in the financial year to March 2025, according to an estimate by CLSA, down from nearly 30% two decades earlier. Debt as a share of disposable income surged to 55% from 31% over the same period.
While India’s household debt to GDP ratio is much lower than for most peer economies, meagre earnings mean Indians end up spending 13% of their income on repaying borrowings, higher than 8.5% for China and 8% for the US.
Much of what Indians borrow goes towards financing consumption rather than creating assets. Households are leveraging up to pay for everything from overseas vacations to weddings and smartphone purchases.
Such financing, which the Reserve Bank of India calls non-housing retail loans, makes up 55% of household obligations and is growing faster than mortgages. India's household debt to GDP ratio stands at 41.9%. If half of those borrowings are consumption-linked, it implies household discretionary debt amounts to roughly 21% of GDP. Apply that to India’s nominal GDP of 331 trillion rupees for 2024-25 and you have at risk loans worth 69 trillion rupees across the country’s banks and non-bank lenders.
This threatens the loan quality at financial institutions led by the $130 billion HDFC Bank HDBK.NS as well as lenders backed by global investors from Sumitomo Mitsui Financial 8316.T to Blackstone BX.N who are accelerating their expansion in India to tap retail credit demand.
The impact of AI on the global workforce may ultimately create more jobs. First, though, it may turn India’s already weak consumption and much-vaunted demographic dividend into a nightmare.
Follow Shritama Bose on LinkedIn and X.
Hiring in India's technology sector has tapered https://www.reuters.com/graphics/BRV-BRV/zgpollrgdvd/chart.png
Services account for well over half of India's output https://www.reuters.com/graphics/BRV-BRV/egpbeemrnvq/chart.png
Indians spend a large chunk of their income on servicing debt https://www.reuters.com/graphics/BRV-BRV/dwvkyyegdvm/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, April 30 (Reuters Breakingviews) - The jobs crisis stirring in India’s vast outsourcing industry spells trouble for the country’s $4 trillion consumption-led economy. With the gap between household income and spending already widening, the consequences of the churn on finance and markets will be far-reaching.
White collar jobs are starting to disappear in the world’s services capital where many global firms employ thousands of staff in global capability centres that are responsible for everything from back-office functions to fraud detection to critical research and development.
Following the launch of artificial intelligence tools by Anthropic and others that allow companies do the same amount of work with fewer people, Oracle ORCL.N laid off 10,000 workers, or one-fifth of its India workforce in March, and Amazon.com AMZN.O let go of 500 people in the country in January, the Economic Times reported, citing sources. It looks like just the beginning of the headcount reductions.
One executive of a global bank told Reuters Breakingviews their workforce in India could shrink by one-third. This could happen quickly within just one or two years because of the double digit attrition rates at offices of global firms in cities including Bengaluru, Gurugram and Pune. JPMorgan Chase JPM.N has a whopping 55,000 employees in the country, which equals about one-fifth of its total workforce and includes one-third of all its technologists; HSBC’s HSBA.L 47,000 local employees make up 23% of its global headcount.
Then there is also “AI deflation” – the term Indian IT firms that typically lap up fresh graduates use to refer to slowing revenue growth. Annual revenue in U.S. dollar terms at industry leader Tata Consultancy Services TCS.NS shrunk for the year ended March 2026, marking the first decline since the $97 billion company's initial public offering in 2004.
Altogether, global capability centres and the IT sector employ up to 15 million people who anchor India’s middle class and whose jobs are under threat from generative AI, Bernstein analysts Venugopal Garre and Nikhil Arela said last week in an open letter to Prime Minister Narendra Modi.
Though this is a small fraction of India’s 616-million-strong workforce comprised mostly of swathes of informal and agricultural workers, the AI vulnerable cohort represents a sizeable chunk of the employed within the rising middle class. With fewer jobs, there will also be pressure on salaries for those who keep theirs.
For India, advances in generative AI are intensifying the intractable challenge of creating enough jobs in a country that skipped over the traditional manufacturing route and where 8 million people enter the workforce each year. Modi's push to drive manufacturing isn’t softening the blow much either, thanks to factory automation.
There are already signs that India’s world-beating 7.8% growth is decoupling from employment generation: New Delhi’s latest Economic Survey notes that since 2022 – the same year that OpenAI launched ChatGPT -- the labour intensity of output has marginally declined. That rupture will deepen unless workers upskill, the survey says, with the change coming “not in a single shock, but in a quiet, steady drift”.
This threatens a blow to spending on what people want, rather than what they need. Private consumption accounts for about 60% of GDP and the top 140 million Indians who on average each earn roughly $15,000 per annum, according to Blume Ventures, drive two-thirds of discretionary spending.
Any contraction in their incomes could force them to cut back, hitting sales of goods from new homes to cars and demand for experiences from dining out to live events. There will be a ripple effect too: Middle-class homes in India employ cooks, cleaners and drivers.
Demand for their services, and those of India’s vast gig economy servicing the middle class, would recede. That puts at risk earnings of carmakers, consumer groups and financial services providers which, together with Mukesh Ambani's Reliance Industries RELI.NS – the owner of India’s largest retailer - account for nearly 62% of the benchmark Nifty 50 index .NSEI. Sluggish consumption is already hurting some of them: small car sales slowed at Maruti Suzuki India MRTI.NS last year and Unilever's ULVR.L Indian unit has been grappling with weak urban demand.
A potential 30% reduction in the 15-million-strong outsourcing and global capability centre workforce over the next two years could shrink the top consuming class by about 5 million to 135 million.
Assuming Blume Ventures' annual income estimate of $15,000, this cohort's total spending power stands to fall by roughly $75 billion a year, assuming those people don't find other employment or sources of income. That's equivalent to 10% of the Nifty 50 constituents’ net sales of 71.3 trillion rupees ($755 billion) for the financial year ended March 2025, per data from the National Stock Exchange.
Overall household savings are already declining as indebtedness mounts: Indians saved barely 23% of their personal disposable income in the financial year to March 2025, according to an estimate by CLSA, down from nearly 30% two decades earlier. Debt as a share of disposable income surged to 55% from 31% over the same period.
While India’s household debt to GDP ratio is much lower than for most peer economies, meagre earnings mean Indians end up spending 13% of their income on repaying borrowings, higher than 8.5% for China and 8% for the US.
Much of what Indians borrow goes towards financing consumption rather than creating assets. Households are leveraging up to pay for everything from overseas vacations to weddings and smartphone purchases.
Such financing, which the Reserve Bank of India calls non-housing retail loans, makes up 55% of household obligations and is growing faster than mortgages. India's household debt to GDP ratio stands at 41.9%. If half of those borrowings are consumption-linked, it implies household discretionary debt amounts to roughly 21% of GDP. Apply that to India’s nominal GDP of 331 trillion rupees for 2024-25 and you have at risk loans worth 69 trillion rupees across the country’s banks and non-bank lenders.
This threatens the loan quality at financial institutions led by the $130 billion HDFC Bank HDBK.NS as well as lenders backed by global investors from Sumitomo Mitsui Financial 8316.T to Blackstone BX.N who are accelerating their expansion in India to tap retail credit demand.
The impact of AI on the global workforce may ultimately create more jobs. First, though, it may turn India’s already weak consumption and much-vaunted demographic dividend into a nightmare.
Follow Shritama Bose on LinkedIn and X.
Hiring in India's technology sector has tapered https://www.reuters.com/graphics/BRV-BRV/zgpollrgdvd/chart.png
Services account for well over half of India's output https://www.reuters.com/graphics/BRV-BRV/egpbeemrnvq/chart.png
Indians spend a large chunk of their income on servicing debt https://www.reuters.com/graphics/BRV-BRV/dwvkyyegdvm/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))
TCS And ASX Go-Live With Chess Release 1 For Cash Clearing And Settlement
April 28 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - CO, ASX GO-LIVE WITH CHESS RELEASE 1 FOR CASH CLEARING AND SETTLEMENT
TCS - CO AND ASX BEGIN WORK ON CHESS REPLACEMENT PROGRAM RELEASE-2
Source text: ID:nNSE7HSXpZ
Further company coverage: TCS.NS
April 28 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - CO, ASX GO-LIVE WITH CHESS RELEASE 1 FOR CASH CLEARING AND SETTLEMENT
TCS - CO AND ASX BEGIN WORK ON CHESS REPLACEMENT PROGRAM RELEASE-2
Source text: ID:nNSE7HSXpZ
Further company coverage: TCS.NS
TCS And Siemens Energy AG Announce Strategic AI Partnership
April 27 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - CO AND SIEMENS ENERGY AG ANNOUNCE STRATEGIC AI PARTNERSHIP
TCS - SIGNS TWO MOUS WITH SIEMENS ENERGY AG AND SIEMENS ENERGY INDIA LIMITED
TCS - SIEMENS ENERGY INDIA LIMITED TO SUPPORT TCS HYPERVAULT FOR AI DATA CENTER ENERGY NEEDS
Source text: ID:nNSEYKKGq
Further company coverage: TCS.NS
April 27 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - CO AND SIEMENS ENERGY AG ANNOUNCE STRATEGIC AI PARTNERSHIP
TCS - SIGNS TWO MOUS WITH SIEMENS ENERGY AG AND SIEMENS ENERGY INDIA LIMITED
TCS - SIEMENS ENERGY INDIA LIMITED TO SUPPORT TCS HYPERVAULT FOR AI DATA CENTER ENERGY NEEDS
Source text: ID:nNSEYKKGq
Further company coverage: TCS.NS
WRAPUP 1-Indian IT firms near‑term outlook muted as clients cut spending, AI risks mount
Changes media packaging code to INDIA-IT/STOCKS and rewrites throughout
By Urvi Dugar
BENGALURU, April 24 - Revenue growth for India's top IT firms will stay muted this fiscal year, as gains from artificial intelligence would be blunted with clients cutting spending amid macroeconomic and geopolitical uncertainty, analysts said.
The Nifty IT index .NIFTYIT, the worst performing sector of 2026, shed roughly $26 billion in market value this week after earnings from market leaders Tata Consultancy Services TCS.NS and Infosys INFY.NS disappointed investors amid worries that agentic AI would disrupt the $315 billion sector and cannibalise earnings.
India's top five IT firms are expected to post muted revenue growth of about 3%-4% in the near term, said Sushovan Nayak, analyst at Anand Rathi.
The sector, which employs about 5.9 million people, had last reported double-digit revenue growth in the March 2023 quarter. Analysts had expected a falling rupee to boost revenue by 10% across the sector.
The U.S., which accounts for more than half of the revenue at most large Indian IT firms, has seen softer deal pipelines, while uncertainty surrounding immigration and tariffs persists, and geopolitical conflicts further delay long‑term technology spending decisions.
The slowdown was the most acute in the banking and financial services, which is a key revenue driver for the sector.
TCS posted its first annual revenue decline in more than two decades, and said that new AI models and tools in the market did not hurt demand for its offerings.
Infosys, HCLTech HCLT.NS and Wipro WIPR.NS trimmed their forecast for fiscal 2027's revenue growth.
Despite near‑term pressures, analysts remain confident that IT companies will eventually leverage AI to defend margins and unlock new growth opportunities.
"Revenue from AI is growing at a fast pace, but it's coming off a very low base and is hardly 5% of total revenue," said Centrum Broking's Piyush Pandey, adding that AI was weighing on pricing, particularly in legacy contracts.
Given that, mid-sized IT firms such as LTM LTIM.NS and Persistent Systems PERS.NS that have stronger digital and AI-led exposure may outperform, said Nayak.
The benchmark Nifty 50 .NSEI is down 8.6% this year so far.
IT stocks underperform India's stock benchmark Nifty 50 in 2026 so far https://reut.rs/4trBtW3
(Reporting by Urvi Dugar in Bengaluru; Editing by Harikrishnan Nair)
((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))
Changes media packaging code to INDIA-IT/STOCKS and rewrites throughout
By Urvi Dugar
BENGALURU, April 24 - Revenue growth for India's top IT firms will stay muted this fiscal year, as gains from artificial intelligence would be blunted with clients cutting spending amid macroeconomic and geopolitical uncertainty, analysts said.
The Nifty IT index .NIFTYIT, the worst performing sector of 2026, shed roughly $26 billion in market value this week after earnings from market leaders Tata Consultancy Services TCS.NS and Infosys INFY.NS disappointed investors amid worries that agentic AI would disrupt the $315 billion sector and cannibalise earnings.
India's top five IT firms are expected to post muted revenue growth of about 3%-4% in the near term, said Sushovan Nayak, analyst at Anand Rathi.
The sector, which employs about 5.9 million people, had last reported double-digit revenue growth in the March 2023 quarter. Analysts had expected a falling rupee to boost revenue by 10% across the sector.
The U.S., which accounts for more than half of the revenue at most large Indian IT firms, has seen softer deal pipelines, while uncertainty surrounding immigration and tariffs persists, and geopolitical conflicts further delay long‑term technology spending decisions.
The slowdown was the most acute in the banking and financial services, which is a key revenue driver for the sector.
TCS posted its first annual revenue decline in more than two decades, and said that new AI models and tools in the market did not hurt demand for its offerings.
Infosys, HCLTech HCLT.NS and Wipro WIPR.NS trimmed their forecast for fiscal 2027's revenue growth.
Despite near‑term pressures, analysts remain confident that IT companies will eventually leverage AI to defend margins and unlock new growth opportunities.
"Revenue from AI is growing at a fast pace, but it's coming off a very low base and is hardly 5% of total revenue," said Centrum Broking's Piyush Pandey, adding that AI was weighing on pricing, particularly in legacy contracts.
Given that, mid-sized IT firms such as LTM LTIM.NS and Persistent Systems PERS.NS that have stronger digital and AI-led exposure may outperform, said Nayak.
The benchmark Nifty 50 .NSEI is down 8.6% this year so far.
IT stocks underperform India's stock benchmark Nifty 50 in 2026 so far https://reut.rs/4trBtW3
(Reporting by Urvi Dugar in Bengaluru; Editing by Harikrishnan Nair)
((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))
HCLTech's $4.5 billion wipeout sparks broad IT selloff, reviving doubts over sector recovery
Rewrites throughout and updates closing levels
By Urvi Dugar and Pranav Kashyap
April 22, BENGALURU - HCLTech HCLT.NS lost $4.5 billion in market capitalisation on Wednesday after it projected fiscal 2027 revenue growth below estimates, with restrained client spending raising fresh doubts over a recovery in India's $315 billion IT industry.
The weakness points to sector-wide challenges rather than a company-specific issue, Goldman Sachs analysts said, citing subdued discretionary spending, slower project ramp‑ups and ongoing macro pressures that suggest a meaningful demand recovery may remain elusive.
Top Indian IT companies have been beset by uncertainties over the last year from U.S. tariff and immigration policies as well as geopolitical turmoil in the Middle East, with clients choosing to focus on optimising costs.
HCLTech shares ended the session down 10.7% at 1,286 rupees, losing the most in a day in more than 10 years. Its fourth‑quarter earnings also missed analyst estimates.
The gloom spilled across the IT pack, dragging larger peers Infosys INFY.NS and Tata Consultancy Services TCS.NS down 3.4% and 3%, respectively, and the sub-index .NIFTYIT down 3.9%.
HCLTech's trading volumes surged as panic selling gripped investors, with 33.06 million shares changing hands—the busiest session since November 2012, and nearly 10 times the 30-day average. Meanwhile, at least six brokerages cut their price target, with Jefferies also downgrading the stock to "Underperform" from "Hold".
NSE data for HCLTech's May 26 expiry contracts showed a jump in put-buying at the 1,200‑rupee strike, with open interest swelling to 6,863 contracts by market close, and heavy call writing at 1,300.
The former implies investors are betting on the stock falling further by around 7% while the latter suggests limited scope for a near‑term rebound.
"The business environment remains highly fluid, making it difficult to form a definitive view of how the next 12 months will unfold," said CEO C Vijayakumar in a post-earnings call.
He also called out specific project scaledowns from two clients in the Americas region, which could shave about 0.5% off annual growth.
Tech Mahindra TEML.NS staged a partial comeback to close 2.5% down, after sliding nearly 6%, following a fourth-quarter revenue beat.
HCLTech continues trade slightly higher than larger rivals https://reut.rs/4vyAi8G
(Reporting by Urvi Dugar and Pranav Kashyap in Bengaluru; Editing by Ronojoy Mazumdar and Janane Venkatraman)
((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))
Rewrites throughout and updates closing levels
By Urvi Dugar and Pranav Kashyap
April 22, BENGALURU - HCLTech HCLT.NS lost $4.5 billion in market capitalisation on Wednesday after it projected fiscal 2027 revenue growth below estimates, with restrained client spending raising fresh doubts over a recovery in India's $315 billion IT industry.
The weakness points to sector-wide challenges rather than a company-specific issue, Goldman Sachs analysts said, citing subdued discretionary spending, slower project ramp‑ups and ongoing macro pressures that suggest a meaningful demand recovery may remain elusive.
Top Indian IT companies have been beset by uncertainties over the last year from U.S. tariff and immigration policies as well as geopolitical turmoil in the Middle East, with clients choosing to focus on optimising costs.
HCLTech shares ended the session down 10.7% at 1,286 rupees, losing the most in a day in more than 10 years. Its fourth‑quarter earnings also missed analyst estimates.
The gloom spilled across the IT pack, dragging larger peers Infosys INFY.NS and Tata Consultancy Services TCS.NS down 3.4% and 3%, respectively, and the sub-index .NIFTYIT down 3.9%.
HCLTech's trading volumes surged as panic selling gripped investors, with 33.06 million shares changing hands—the busiest session since November 2012, and nearly 10 times the 30-day average. Meanwhile, at least six brokerages cut their price target, with Jefferies also downgrading the stock to "Underperform" from "Hold".
NSE data for HCLTech's May 26 expiry contracts showed a jump in put-buying at the 1,200‑rupee strike, with open interest swelling to 6,863 contracts by market close, and heavy call writing at 1,300.
The former implies investors are betting on the stock falling further by around 7% while the latter suggests limited scope for a near‑term rebound.
"The business environment remains highly fluid, making it difficult to form a definitive view of how the next 12 months will unfold," said CEO C Vijayakumar in a post-earnings call.
He also called out specific project scaledowns from two clients in the Americas region, which could shave about 0.5% off annual growth.
Tech Mahindra TEML.NS staged a partial comeback to close 2.5% down, after sliding nearly 6%, following a fourth-quarter revenue beat.
HCLTech continues trade slightly higher than larger rivals https://reut.rs/4vyAi8G
(Reporting by Urvi Dugar and Pranav Kashyap in Bengaluru; Editing by Ronojoy Mazumdar and Janane Venkatraman)
((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))
OpenAI leans on global consultancies to expand Codex use in large companies
April 21 (Reuters) - OpenAI said on Tuesday it is expanding partnerships with major global consulting firms to speed up enterprise adoption of its Codex artificial intelligence tools, as competition in the rapidly evolving AI market intensifies.
It is also launching Codex Labs, which will place OpenAI specialists directly inside customer organizations to help integrate the technology into existing systems and workflows.
The ChatGPT‑maker said it is working with global systems integrators including Accenture ACN.N, Capgemini CAPP.PA, CGI, Cognizant CTSH.O, Infosys INFY.NS, PwC and Tata Consultancy Services TCS.NS to help large companies identify and deploy Codex across their software development operations.
The move comes as OpenAI faces increasing pressure from rivals such as Anthropic, whose Claude models have gained traction with corporate customers for coding, reasoning and enterprise deployments.
Larger technology firms including Microsoft, Google and Amazon are also investing heavily to differentiate their AI offerings for businesses.
As part of a broader strategic shift, OpenAI has in recent months scaled back or shut down some smaller experimental initiatives, including projects such as Sora, as it concentrates resources on core products such as Codex and ChatGPT.
Codex is designed to automate parts of the software development lifecycle, including writing, reviewing and reasoning about code.
OpenAI said weekly usage of Codex has climbed sharply in recent weeks, with more than 4 million developers now using it, up from around 3 million earlier this month.
(Reporting by Kritika Lamba in Bengaluru; Editing by Devika Syamnath)
April 21 (Reuters) - OpenAI said on Tuesday it is expanding partnerships with major global consulting firms to speed up enterprise adoption of its Codex artificial intelligence tools, as competition in the rapidly evolving AI market intensifies.
It is also launching Codex Labs, which will place OpenAI specialists directly inside customer organizations to help integrate the technology into existing systems and workflows.
The ChatGPT‑maker said it is working with global systems integrators including Accenture ACN.N, Capgemini CAPP.PA, CGI, Cognizant CTSH.O, Infosys INFY.NS, PwC and Tata Consultancy Services TCS.NS to help large companies identify and deploy Codex across their software development operations.
The move comes as OpenAI faces increasing pressure from rivals such as Anthropic, whose Claude models have gained traction with corporate customers for coding, reasoning and enterprise deployments.
Larger technology firms including Microsoft, Google and Amazon are also investing heavily to differentiate their AI offerings for businesses.
As part of a broader strategic shift, OpenAI has in recent months scaled back or shut down some smaller experimental initiatives, including projects such as Sora, as it concentrates resources on core products such as Codex and ChatGPT.
Codex is designed to automate parts of the software development lifecycle, including writing, reviewing and reasoning about code.
OpenAI said weekly usage of Codex has climbed sharply in recent weeks, with more than 4 million developers now using it, up from around 3 million earlier this month.
(Reporting by Kritika Lamba in Bengaluru; Editing by Devika Syamnath)
India's TCS to probe sexual assault, religious conversion allegations in western India office
BENGALURU, April 13 (Reuters) - Tata Consultancy Services TCS.NS has ordered a probe into allegations of sexual assault and forced religious conversion involving employees at its Nashik office in western India, its parent Tata Sons said on Monday.
The probe, led by TCS's Chief Operating Officer Aarthi Subramanian, is underway to establish the facts and identify those responsible, Tata Sons Chairman N. Chandrasekaran said in a statement.
“Any necessary process improvements or corrective measures will be promptly implemented and strictly enforced,” he added.
Nashik city police are investigating nine complaints linked to the alleged incidents at the branch of India's largest software exporter, the Indian Express reported.
Police have arrested six people so far, the newspaper said.
The employees under investigation have been suspended pending the inquiry, a TCS spokesperson said.
“We are looking into the incident carefully. The investigations are underway,” Maharashtra Chief Minister Devendra Fadnavis told reporters on Sunday.
(Reporting by Sai Ishwarbharath B; Editing by Tasim Zahid)
BENGALURU, April 13 (Reuters) - Tata Consultancy Services TCS.NS has ordered a probe into allegations of sexual assault and forced religious conversion involving employees at its Nashik office in western India, its parent Tata Sons said on Monday.
The probe, led by TCS's Chief Operating Officer Aarthi Subramanian, is underway to establish the facts and identify those responsible, Tata Sons Chairman N. Chandrasekaran said in a statement.
“Any necessary process improvements or corrective measures will be promptly implemented and strictly enforced,” he added.
Nashik city police are investigating nine complaints linked to the alleged incidents at the branch of India's largest software exporter, the Indian Express reported.
Police have arrested six people so far, the newspaper said.
The employees under investigation have been suspended pending the inquiry, a TCS spokesperson said.
“We are looking into the incident carefully. The investigations are underway,” Maharashtra Chief Minister Devendra Fadnavis told reporters on Sunday.
(Reporting by Sai Ishwarbharath B; Editing by Tasim Zahid)
India's TCS falls as rare annual revenue drop dulls quarterly earnings beat, deal wins
Adds results details, analyst comments throughout
April 10 (Reuters) - Shares of Tata Consultancy Services TCS.NS fell nearly 3% on Friday after a rare annual revenue drop outweighed strong deal wins and a quarterly earnings beat, suggesting sustained growth recovery remains elusive amid weak client spending and rising costs.
The stock was on track for its worst day in nearly a month and was set to snap a six-session gaining streak.
It was the third-biggest decliner on the IT index .NIFTYIT and the benchmark Nifty 50 .NSEI.
The IT index was down 2.2%, even as the Nifty 50 was trading 0.9% higher.
TCS beat fourth-quarter earnings estimates and reported $12 billion in deal wins, but analysts were disappointed by a 2.4% drop in its full-year dollar revenue - its first annual decline since listing.
Despite sequential improvement during the quarter, the full-year revenue drop underlined prolonged caution in clients' technology budgets, said Dolat Capital.
Jefferies analysts echoed the view, saying the results offered limited evidence of any meaningful uptick in demand and that an uncertain growth outlook could drive underperformance in the stock.
U.S.-listed shares of TCS' smaller rivals Infosys INFY.NS and Wipro WIPR.NS also lost nearly 2% overnight.
While TCS' margins edged up 10 basis points during the quarter, analysts cautioned that upside could be limited.
BOBCaps said higher subcontracting costs, wage hikes and continued investments in AI platforms could cap near-term margin expansion.
TCS shares have slumped nearly 20.5% so far this year, compared with a 19% drop in the IT index, as concerns of AI-led disruption and weak client spending persist. The benchmark Nifty 50 index is down 8.2% year-to-date.
TCS continues to lag peers https://reut.rs/4eehlC1
(Reporting by Kashish Tandon in Bengaluru; Editing by Sumana Nandy)
((Kashish.Tandon@thomsonreuters.com; 8800437922;))
Adds results details, analyst comments throughout
April 10 (Reuters) - Shares of Tata Consultancy Services TCS.NS fell nearly 3% on Friday after a rare annual revenue drop outweighed strong deal wins and a quarterly earnings beat, suggesting sustained growth recovery remains elusive amid weak client spending and rising costs.
The stock was on track for its worst day in nearly a month and was set to snap a six-session gaining streak.
It was the third-biggest decliner on the IT index .NIFTYIT and the benchmark Nifty 50 .NSEI.
The IT index was down 2.2%, even as the Nifty 50 was trading 0.9% higher.
TCS beat fourth-quarter earnings estimates and reported $12 billion in deal wins, but analysts were disappointed by a 2.4% drop in its full-year dollar revenue - its first annual decline since listing.
Despite sequential improvement during the quarter, the full-year revenue drop underlined prolonged caution in clients' technology budgets, said Dolat Capital.
Jefferies analysts echoed the view, saying the results offered limited evidence of any meaningful uptick in demand and that an uncertain growth outlook could drive underperformance in the stock.
U.S.-listed shares of TCS' smaller rivals Infosys INFY.NS and Wipro WIPR.NS also lost nearly 2% overnight.
While TCS' margins edged up 10 basis points during the quarter, analysts cautioned that upside could be limited.
BOBCaps said higher subcontracting costs, wage hikes and continued investments in AI platforms could cap near-term margin expansion.
TCS shares have slumped nearly 20.5% so far this year, compared with a 19% drop in the IT index, as concerns of AI-led disruption and weak client spending persist. The benchmark Nifty 50 index is down 8.2% year-to-date.
TCS continues to lag peers https://reut.rs/4eehlC1
(Reporting by Kashish Tandon in Bengaluru; Editing by Sumana Nandy)
((Kashish.Tandon@thomsonreuters.com; 8800437922;))
TCS Exec Says Seeing Cautious Investment Decision Making In BFSI Segment
April 9 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS EXEC: SEEING CAUTIOUS INVESTMENT DECISION MAKING IN BFSI SEGMENT
TCS EXEC: PHARMACEUTICAL INDUSTRY ADOPTING AI TO TACKLE GROWTH AND PRICING PRESSURES
TCS EXEC: MANUFACTURING REMAINED CAUTIOUS IN Q4 ON MACROECONOMIC UNCERTAINTY, TARIFF VOLATILITY
TCS EXEC: EXPECTING A TECH SPENDING REBOUND IN TELECOM SECTOR
TCS EXEC: NOT SEEING DELAY, PAUSES IN SPENDS DUE TO RELEASE OF NEW AI MODELS AND TOOLS
Source text: [ID:]
Further company coverage: TCS.NS
April 9 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS EXEC: SEEING CAUTIOUS INVESTMENT DECISION MAKING IN BFSI SEGMENT
TCS EXEC: PHARMACEUTICAL INDUSTRY ADOPTING AI TO TACKLE GROWTH AND PRICING PRESSURES
TCS EXEC: MANUFACTURING REMAINED CAUTIOUS IN Q4 ON MACROECONOMIC UNCERTAINTY, TARIFF VOLATILITY
TCS EXEC: EXPECTING A TECH SPENDING REBOUND IN TELECOM SECTOR
TCS EXEC: NOT SEEING DELAY, PAUSES IN SPENDS DUE TO RELEASE OF NEW AI MODELS AND TOOLS
Source text: [ID:]
Further company coverage: TCS.NS
BREAKINGVIEWS-Tata is flying into a succession doom loop
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, April 8 (Reuters Breakingviews) - It's a tough time to be in the Tata group's cockpit. The $260 billion conglomerate was already buffeted by its own leadership turbulence. Now the CEO of its beleaguered carrier Air India has quit, the carrier confirmed on Tuesday. That complicates Chair N Chandrasekaran's bid to stay in the pilot's seat of the unlisted holding company, Tata Sons.
Campbell Wilson had more than a year left on his five-year contract at the de facto national airline. But financial losses and operational issues, including a deadly crash, have been piling up since the Tatas bought it from the Indian government in 2022. Chandrasekaran, or Chandra as he's widely known, oversaw Air India's purchase, but the acquisition was driven by the emotional attachment to the asset by Ratan Tata, Tata Sons' late chair emeritus, whose family founded the airline prior to its nationalisation.
Wilson's departure also looks badly handled. He had, the airline said on Tuesday, told Chandra in 2024 that he intended to step down this year. That was ample time to find a successor. The board held discussions with prospective candidates, yet he's leaving with no one to take the helm. By contrast, rival Interglobe Aviation INGL.NS, or IndiGo, quickly found a replacement last month for outgoing CEO Pieter Elbers in British Airways veteran Willie Walsh.
It's reminiscent of the inability to resolve lingering leadership issues at the airline's parent. Tata Sons holds stakes in 25 public companies and private units, including the carrier and a semiconductor-making venture. A board meeting in June will decide if Chandra will get a third five-year term at the powerful Indian business. His current stint is due to end in 2027.
A year ago a renewal was all but guaranteed for the 62-year-old executive, who led the group's cash cow outsourcer Tata Consultancy Services TCS.NS for eight years and oversaw a turnaround of group companies, including Tata Motors Passenger Vehicles TAMO.NS. But problems at a number of subsidiaries have brought pushback from Noel Tata, the new head of the charitable trusts that control the holding firm.
To win over opponents, Chandra may have to lay out a fresh plan for turning around underwater businesses like Air India and the struggling e-commerce unit Tata Digital, Moneycontrol reported on Monday, citing sources. He will also be under pressure to chart ways for TCS to regain its edge as artificial intelligence tools disrupt the business model of India's largest outsourcer.
That makes Wilson's departure even more inopportune, lengthening Chandra's emergency to-do list. It looks increasingly like the Tata group is fighting to break out of a succession doom loop.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Air India confirmed on April 7 that CEO Campbell Wilson has resigned. It came hours after Reuters reported the news, citing an unnamed source with direct knowledge of the matter.
Air India said Wilson made known in 2024 his intention to quit this year.
Tata Sons chair N. Chandrasekaran is expected to spell out a clearer path to profitability for businesses such as Air India, Tata Digital and the group’s electronics manufacturing ventures, Indian news website Moneycontrol reported on April 6, citing unnamed officials from the Tata group.
Most top Tata group stocks beat the index under Chandra https://www.reuters.com/graphics/BRV-BRV/zjvqmaeqbvx/chart.png
(Editing by Antony Currie and Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, April 8 (Reuters Breakingviews) - It's a tough time to be in the Tata group's cockpit. The $260 billion conglomerate was already buffeted by its own leadership turbulence. Now the CEO of its beleaguered carrier Air India has quit, the carrier confirmed on Tuesday. That complicates Chair N Chandrasekaran's bid to stay in the pilot's seat of the unlisted holding company, Tata Sons.
Campbell Wilson had more than a year left on his five-year contract at the de facto national airline. But financial losses and operational issues, including a deadly crash, have been piling up since the Tatas bought it from the Indian government in 2022. Chandrasekaran, or Chandra as he's widely known, oversaw Air India's purchase, but the acquisition was driven by the emotional attachment to the asset by Ratan Tata, Tata Sons' late chair emeritus, whose family founded the airline prior to its nationalisation.
Wilson's departure also looks badly handled. He had, the airline said on Tuesday, told Chandra in 2024 that he intended to step down this year. That was ample time to find a successor. The board held discussions with prospective candidates, yet he's leaving with no one to take the helm. By contrast, rival Interglobe Aviation INGL.NS, or IndiGo, quickly found a replacement last month for outgoing CEO Pieter Elbers in British Airways veteran Willie Walsh.
It's reminiscent of the inability to resolve lingering leadership issues at the airline's parent. Tata Sons holds stakes in 25 public companies and private units, including the carrier and a semiconductor-making venture. A board meeting in June will decide if Chandra will get a third five-year term at the powerful Indian business. His current stint is due to end in 2027.
A year ago a renewal was all but guaranteed for the 62-year-old executive, who led the group's cash cow outsourcer Tata Consultancy Services TCS.NS for eight years and oversaw a turnaround of group companies, including Tata Motors Passenger Vehicles TAMO.NS. But problems at a number of subsidiaries have brought pushback from Noel Tata, the new head of the charitable trusts that control the holding firm.
To win over opponents, Chandra may have to lay out a fresh plan for turning around underwater businesses like Air India and the struggling e-commerce unit Tata Digital, Moneycontrol reported on Monday, citing sources. He will also be under pressure to chart ways for TCS to regain its edge as artificial intelligence tools disrupt the business model of India's largest outsourcer.
That makes Wilson's departure even more inopportune, lengthening Chandra's emergency to-do list. It looks increasingly like the Tata group is fighting to break out of a succession doom loop.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Air India confirmed on April 7 that CEO Campbell Wilson has resigned. It came hours after Reuters reported the news, citing an unnamed source with direct knowledge of the matter.
Air India said Wilson made known in 2024 his intention to quit this year.
Tata Sons chair N. Chandrasekaran is expected to spell out a clearer path to profitability for businesses such as Air India, Tata Digital and the group’s electronics manufacturing ventures, Indian news website Moneycontrol reported on April 6, citing unnamed officials from the Tata group.
Most top Tata group stocks beat the index under Chandra https://www.reuters.com/graphics/BRV-BRV/zjvqmaeqbvx/chart.png
(Editing by Antony Currie and Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))
TCS And Swissport Extend Strategic Partnership To Accelerate AI-Led Transformation
March 20 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS AND SWISSPORT EXTEND STRATEGIC PARTNERSHIP TO ACCELERATE AI-LED TRANSFORMATION
FIVE-YEAR AGREEMENT FOR DIGITAL INNOVATION ACROSS SWISSPORT'S GLOBAL AVIATION SERVICES
Further company coverage: TCS.NS
March 20 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS AND SWISSPORT EXTEND STRATEGIC PARTNERSHIP TO ACCELERATE AI-LED TRANSFORMATION
FIVE-YEAR AGREEMENT FOR DIGITAL INNOVATION ACROSS SWISSPORT'S GLOBAL AVIATION SERVICES
Further company coverage: TCS.NS
Amadeus Signs Global Strategic Agreement With Tata Consultancy Services
March 19 (Reuters) - Amadeus IT Group SA AMA.MC:
SIGNS GLOBAL STRATEGIC AGREEMENT WITH TATA CONSULTANCY SERVICES
RELATIONSHIP TO SPAN MULTIPLE AREAS OF BUSINESS
IN FIRST INSTANCE, COLLABORATION TO SEE TCS BECOME SUPPORTING PARTNER IN IMPLEMENTATION OF AMADEUS NEVIO
Further company coverage: AMA.MC
(Gdansk Newsroom)
((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))
March 19 (Reuters) - Amadeus IT Group SA AMA.MC:
SIGNS GLOBAL STRATEGIC AGREEMENT WITH TATA CONSULTANCY SERVICES
RELATIONSHIP TO SPAN MULTIPLE AREAS OF BUSINESS
IN FIRST INSTANCE, COLLABORATION TO SEE TCS BECOME SUPPORTING PARTNER IN IMPLEMENTATION OF AMADEUS NEVIO
Further company coverage: AMA.MC
(Gdansk Newsroom)
((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))
TCS And Pearson Partner To Accelerate AI-Powered Learning For Global Industries
March 18 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS AND PEARSON PARTNER TO ACCELERATE AI-POWERED LEARNING FOR GLOBAL INDUSTRIES
Further company coverage: TCS.NS
March 18 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS AND PEARSON PARTNER TO ACCELERATE AI-POWERED LEARNING FOR GLOBAL INDUSTRIES
Further company coverage: TCS.NS
TCS Launches Rapid Outcome AI Platform Powered By Nvidia
March 17 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS LAUNCHES RAPID OUTCOME AI PLATFORM POWERED BY NVIDIA
Further company coverage: TCS.NS
March 17 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS LAUNCHES RAPID OUTCOME AI PLATFORM POWERED BY NVIDIA
Further company coverage: TCS.NS
TCS Launches Gemini Experience Center In The US
March 9 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
LAUNCHES GEMINI EXPERIENCE CENTER IN THE US
CO AND GOOGLE CLOUD TO HAVE 13 GEMINI EXPERIENCE CENTERS GLOBALLY BY END-2026
Source text: ID:nNSE2yVTbF
Further company coverage: TCS.NS
March 9 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
LAUNCHES GEMINI EXPERIENCE CENTER IN THE US
CO AND GOOGLE CLOUD TO HAVE 13 GEMINI EXPERIENCE CENTERS GLOBALLY BY END-2026
Source text: ID:nNSE2yVTbF
Further company coverage: TCS.NS
Moody's Ratings Announces Completion Of A Periodic Review Of Ratings Of Tata Consultancy Services
March 6 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
MOODY'S RATINGS: ANNOUNCES COMPLETION OF A PERIODIC REVIEW OF RATINGS OF TATA CONSULTANCY SERVICES
Source text: ID:nMDY1k73KR
Further company coverage: TCS.NS
March 6 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
MOODY'S RATINGS: ANNOUNCES COMPLETION OF A PERIODIC REVIEW OF RATINGS OF TATA CONSULTANCY SERVICES
Source text: ID:nMDY1k73KR
Further company coverage: TCS.NS
TCS Is In 'Advanced' Talks For More AI Data Centers In India - Bloomberg News
March 5 (Reuters) -
TCS IS IN 'ADVANCED' TALKS FOR MORE AI DATA CENTERS IN INDIA - BLOOMBERG NEWS
Source text: https://tinyurl.com/2p2naukv
Further company coverage: TCS.NS
March 5 (Reuters) -
TCS IS IN 'ADVANCED' TALKS FOR MORE AI DATA CENTERS IN INDIA - BLOOMBERG NEWS
Source text: https://tinyurl.com/2p2naukv
Further company coverage: TCS.NS
BREAKINGVIEWS-India’s AI software freakout has solid foundation
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Una Galani
HONG KONG, March 4 (Reuters Breakingviews) - Is the global selloff in enterprise software and services stocks an overreaction? Maybe not in India. New tools released by Anthropic point towards increasing automation of work that "once required armies of consultants spending years mapping workflows", according to the owner of Claude large language models. The stakes are higher for the world's fourth-largest economy, where a reduction of IT services exports by Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS and others or a cut in the size of foreign firms' global capability centres could upend the macroeconomic stability the country has enjoyed.
Providing services to global companies including JPMorgan JPM.N, Goldman Sachs GS.N and Exxon Mobil XOM.N created massive wealth, spurred the rise of major cities like Hyderabad and Bengaluru and created a wall of money that has propelled the stock market, property prices and well-heeled Indians' spending power. Moreover, it also generates foreign exchange earnings that help slow the depreciation of the Indian rupee, which, in turn, keeps a check on imported inflation for the energy-hungry country.
An analysis of Reserve Bank of India data by Samiran Chakraborty, an economist at Citigroup, is sobering. It concludes growth in India's exports of software and other services has, in the recent past, more than offset the widening trade deficit in goods. With further support from remittances of Indians overseas, the current account deficit fell to 0.7% of GDP in the fiscal year to the end of March 2025.
In a scenario of no growth in software exports in fiscal year 2027, Chakraborty estimates most of India's projected surplus in services, roughly $20 billion, would be wiped out. That would weigh on an already weak rupee: in 2025, it declined 5% against the U.S. dollar and was the worst-performing major currency in Asia.
True, India's software services exports have grown 9.5% annually over the past decade – three times the rate of its goods exports – and Citi forecasts 8% for the year to March 2027. What's more, IT firms typically have contracts that last between three to seven years, and so AI disruption – in this case, clients renegotiating terms – ought to be gradual.
But there is widespread fear that automation tools like those from Anthropic could hollow out these industries faster. This fear is reflected in the 20% drop in India's benchmark Nifty IT index since the start of the year. Several executives at top global firms have also told Breakingviews they expect to have fewer people working in their India-based global capability centres in the coming years. Given India's heavy reliance on services in its external accounts, the software apocalypse spells trouble for returns on all rupee-denominated assets. That justifies selling the rumour and buying the fact.
Follow Una Galani on Linkedin and X.
CONTEXT NEWS
India’s Nifty IT Index has fallen 20% so far this year. The Indian rupee has declined 1.3% against the U.S. dollar over the same period.
Indian software stocks have underperformed on AI fears https://www.reuters.com/graphics/BRV-BRV/lbvgynkrgvq/chart.png
(Editing by Robyn Mak; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on GALANI/ una.galani@thomsonreuters.com))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Una Galani
HONG KONG, March 4 (Reuters Breakingviews) - Is the global selloff in enterprise software and services stocks an overreaction? Maybe not in India. New tools released by Anthropic point towards increasing automation of work that "once required armies of consultants spending years mapping workflows", according to the owner of Claude large language models. The stakes are higher for the world's fourth-largest economy, where a reduction of IT services exports by Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS and others or a cut in the size of foreign firms' global capability centres could upend the macroeconomic stability the country has enjoyed.
Providing services to global companies including JPMorgan JPM.N, Goldman Sachs GS.N and Exxon Mobil XOM.N created massive wealth, spurred the rise of major cities like Hyderabad and Bengaluru and created a wall of money that has propelled the stock market, property prices and well-heeled Indians' spending power. Moreover, it also generates foreign exchange earnings that help slow the depreciation of the Indian rupee, which, in turn, keeps a check on imported inflation for the energy-hungry country.
An analysis of Reserve Bank of India data by Samiran Chakraborty, an economist at Citigroup, is sobering. It concludes growth in India's exports of software and other services has, in the recent past, more than offset the widening trade deficit in goods. With further support from remittances of Indians overseas, the current account deficit fell to 0.7% of GDP in the fiscal year to the end of March 2025.
In a scenario of no growth in software exports in fiscal year 2027, Chakraborty estimates most of India's projected surplus in services, roughly $20 billion, would be wiped out. That would weigh on an already weak rupee: in 2025, it declined 5% against the U.S. dollar and was the worst-performing major currency in Asia.
True, India's software services exports have grown 9.5% annually over the past decade – three times the rate of its goods exports – and Citi forecasts 8% for the year to March 2027. What's more, IT firms typically have contracts that last between three to seven years, and so AI disruption – in this case, clients renegotiating terms – ought to be gradual.
But there is widespread fear that automation tools like those from Anthropic could hollow out these industries faster. This fear is reflected in the 20% drop in India's benchmark Nifty IT index since the start of the year. Several executives at top global firms have also told Breakingviews they expect to have fewer people working in their India-based global capability centres in the coming years. Given India's heavy reliance on services in its external accounts, the software apocalypse spells trouble for returns on all rupee-denominated assets. That justifies selling the rumour and buying the fact.
Follow Una Galani on Linkedin and X.
CONTEXT NEWS
India’s Nifty IT Index has fallen 20% so far this year. The Indian rupee has declined 1.3% against the U.S. dollar over the same period.
Indian software stocks have underperformed on AI fears https://www.reuters.com/graphics/BRV-BRV/lbvgynkrgvq/chart.png
(Editing by Robyn Mak; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on GALANI/ una.galani@thomsonreuters.com))
TCS Expands Partnership With Zscaler For AI-Powered Solution
March 2 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - EXPANDS PARTNERSHIP WITH ZSCALER FOR AI-POWERED SOLUTION
TCS - ANNOUNCED LAUNCH OF TCS WORKSPACE EXPERIENCE STUDIO ENGINEERED WITH ZSCALER DIGITAL EXPERIENCE
Source text: ID:nBSE8cC9Jt
Further company coverage: TCS.NS
March 2 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - EXPANDS PARTNERSHIP WITH ZSCALER FOR AI-POWERED SOLUTION
TCS - ANNOUNCED LAUNCH OF TCS WORKSPACE EXPERIENCE STUDIO ENGINEERED WITH ZSCALER DIGITAL EXPERIENCE
Source text: ID:nBSE8cC9Jt
Further company coverage: TCS.NS
Threat to large IT firms 'overblown', Cognizant's AI chief says amid Anthropic-driven disruption
By Haripriya Suresh
MUMBAI, Feb 26 (Reuters) - Fears that new artificial intelligence tools could replace large IT services firms are "overblown" as clients still need help deploying and scaling the technology, Babak Hodjat, chief AI officer at Cognizant CTSH.O, told Reuters in an interview.
Automated AI tools from startups such as Anthropic have stirred concerns about disruption in the business models of software and services firms globally, including India's traditionally labour-intensive IT services industry.
Enterprises are far from being able to rely on a single, all-purpose AI agent, said Hodjat, adding that most clients still need help engineering, integrating, and governing AI systems.
"That mapping is our job, it does not come just automatically out of the box," said Hodjat, whose work helped power Apple's AAPL.O Siri voice assistant.
Nasdaq-listed Cognizant, which has more than 70% of its workforce operating out of India, forecast annual revenue above Wall Street estimates on the back of strong demand as businesses adopt AI into their workflows.
Rivals Tata Consultancy Services TCS.NS and Wipro WIPR.NS have also maintained that rapid AI adoption will boost, rather than shrink, demand for software service providers.
Hodjat's vote of confidence in the role of services companies comes despite AI-related job cuts already underway.
Shipping and logistics management software company WiseTech Global WTC.AX said it would lay off nearly a third of its workforce as it integrates AI into its customer software and internal operations. TCS announced 12,000 job cuts last year, but has since denied to local media that the layoffs were AI-related.
Cognizant, which generates about 30% of its code through AI and aims to reach 50%, is not worried about automation eliminating entry-level jobs. CEO Ravi Kumar S said during the company's earnings call earlier this month that it hired 25,000 fresh graduates in 2025, and expects to exceed that in 2026.
Almost all of Cognizant's clients have already tried to work with AI agents, Hodjat said, but have acknowledged that they need us to deploy it within their systems for returns.
(Reporting by Haripriya Suresh in Mumbai; Editing by Janane Venkatraman)
By Haripriya Suresh
MUMBAI, Feb 26 (Reuters) - Fears that new artificial intelligence tools could replace large IT services firms are "overblown" as clients still need help deploying and scaling the technology, Babak Hodjat, chief AI officer at Cognizant CTSH.O, told Reuters in an interview.
Automated AI tools from startups such as Anthropic have stirred concerns about disruption in the business models of software and services firms globally, including India's traditionally labour-intensive IT services industry.
Enterprises are far from being able to rely on a single, all-purpose AI agent, said Hodjat, adding that most clients still need help engineering, integrating, and governing AI systems.
"That mapping is our job, it does not come just automatically out of the box," said Hodjat, whose work helped power Apple's AAPL.O Siri voice assistant.
Nasdaq-listed Cognizant, which has more than 70% of its workforce operating out of India, forecast annual revenue above Wall Street estimates on the back of strong demand as businesses adopt AI into their workflows.
Rivals Tata Consultancy Services TCS.NS and Wipro WIPR.NS have also maintained that rapid AI adoption will boost, rather than shrink, demand for software service providers.
Hodjat's vote of confidence in the role of services companies comes despite AI-related job cuts already underway.
Shipping and logistics management software company WiseTech Global WTC.AX said it would lay off nearly a third of its workforce as it integrates AI into its customer software and internal operations. TCS announced 12,000 job cuts last year, but has since denied to local media that the layoffs were AI-related.
Cognizant, which generates about 30% of its code through AI and aims to reach 50%, is not worried about automation eliminating entry-level jobs. CEO Ravi Kumar S said during the company's earnings call earlier this month that it hired 25,000 fresh graduates in 2025, and expects to exceed that in 2026.
Almost all of Cognizant's clients have already tried to work with AI agents, Hodjat said, but have acknowledged that they need us to deploy it within their systems for returns.
(Reporting by Haripriya Suresh in Mumbai; Editing by Janane Venkatraman)
India's TCS urging staff to use AI despite risk to revenue, CEO says
By Haripriya Suresh
MUMBAI, Feb 25 (Reuters) - Tata Consultancy Services TCS.NS is urging employees to use artificial intelligence tools to deliver work faster and cheaper, even if it eats into the company's revenue, the CEO of India's largest software-services provider said on Wednesday.
The comments come as investor concerns about AI disrupting the Indian IT sector's traditional, labour-heavy operating model have wiped off about $68.6 billion market value in February.
"We are telling associates that if you find that you can do something faster, better, cheaper with AI, you should probably go and tell your customers, even if it cannibalises revenue," CEO K Krithivasan said at the Nasscom Technology and Leadership Forum in Mumbai.
"We are not afraid this technology will take away our livelihood. We believe it is going to open up more, so you enjoy the benefits the more you do, and not by resisting the change," he said.
TCS' stance mirrors that of smaller rival Wipro WIPR.NS, which expects rapid AI adoption to boost rather than shrink demand for software service providers. Wipro Chief Strategist and Technology Officer Hari Shetty told Reuters he expects AI to create more jobs than it displaces.
India's Nifty IT index .NIFTYIT fell 21% this month as of Tuesday's close, putting it on course for its worst monthly performance in nearly 23 years.
(Reporting by Haripriya Suresh in Mumbai; Additional reporting by Bharath Rajeswaran; Writing by Kashish Tandon; Editing by Dhanya Skariachan and Mrigank Dhaniwala)
By Haripriya Suresh
MUMBAI, Feb 25 (Reuters) - Tata Consultancy Services TCS.NS is urging employees to use artificial intelligence tools to deliver work faster and cheaper, even if it eats into the company's revenue, the CEO of India's largest software-services provider said on Wednesday.
The comments come as investor concerns about AI disrupting the Indian IT sector's traditional, labour-heavy operating model have wiped off about $68.6 billion market value in February.
"We are telling associates that if you find that you can do something faster, better, cheaper with AI, you should probably go and tell your customers, even if it cannibalises revenue," CEO K Krithivasan said at the Nasscom Technology and Leadership Forum in Mumbai.
"We are not afraid this technology will take away our livelihood. We believe it is going to open up more, so you enjoy the benefits the more you do, and not by resisting the change," he said.
TCS' stance mirrors that of smaller rival Wipro WIPR.NS, which expects rapid AI adoption to boost rather than shrink demand for software service providers. Wipro Chief Strategist and Technology Officer Hari Shetty told Reuters he expects AI to create more jobs than it displaces.
India's Nifty IT index .NIFTYIT fell 21% this month as of Tuesday's close, putting it on course for its worst monthly performance in nearly 23 years.
(Reporting by Haripriya Suresh in Mumbai; Additional reporting by Bharath Rajeswaran; Writing by Kashish Tandon; Editing by Dhanya Skariachan and Mrigank Dhaniwala)
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What does TCS do?
Tata Consultancy Services (TCS)is an IT services, consulting and business solutions organization partnering with many of the world’s largest businesses in their transformational journeys for many years. With a global presence and deep domain expertise across multiple industry verticals, the company offers a comprehensive portfolio of services and offerings - grouped under application development and management, digital transformation, AI (Artificial Intelligence), data and cloud services, engineering services, cognitive business operations, cyber security, and products & platforms - targeting every C-suite stakeholder.
Who are the competitors of TCS?
TCS major competitors are Infosys, HCL Tech., Wipro, Tech Mahindra, LTM, Oracle Finl. Service, Persistent Systems. Market Cap of TCS is ₹8,42,218 Crs. While the median market cap of its peers are ₹1,41,324 Crs.
Is TCS financially stable compared to its competitors?
TCS seems to be financially stable compared to its competitors. The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Does TCS pay decent dividends?
The company seems to pay a good stable dividend. TCS latest dividend payout ratio is 80.92% and 3yr average dividend payout ratio is 77.47%
How has TCS allocated its funds?
Companies resources are allocated to majorly productive assets like Plant & Machinery and unproductive assets like Accounts Receivable
How strong is TCS balance sheet?
Balance sheet of TCS is strong. It shouldn't have solvency or liquidity issues.
Is the profitablity of TCS improving?
Yes, profit is increasing. The profit of TCS is ₹49,210 Crs for Mar 2026, ₹48,553 Crs for Mar 2025 and ₹45,908 Crs for Mar 2024
Is the debt of TCS increasing or decreasing?
Yes, The net debt of TCS is increasing. Latest net debt of TCS is -₹25,809 Crs as of Mar-26. This is greater than Mar-25 when it was -₹30,912 Crs.
Is TCS stock expensive?
TCS is not expensive. Latest PE of TCS is 17.11, while 3 year average PE is 29.18. Also latest EV/EBITDA of TCS is 11.45 while 3yr average is 20.59.
Has the share price of TCS grown faster than its competition?
TCS has given lower returns compared to its competitors. TCS has grown at ~6.87% over the last 9yrs while peers have grown at a median rate of 11.63%
Is the promoter bullish about TCS?
Promoters stake in the company seems stable, and we need to go through filings and allocation of resources to gauge promoter bullishness. Latest quarter promoter holding in TCS is 71.77% and last quarter promoter holding is 71.77%.
Are mutual funds buying/selling TCS?
The mutual fund holding of TCS is increasing. The current mutual fund holding in TCS is 5.77% while previous quarter holding is 5.52%.