TCS CEO Sees Global Recovery And Stronger Second Half Ahead

By siliconindia | Monday, 13 October 2025, 02:53 Hrs

TCS CEO K Krithivasan notes a 'small positive bias' in the global business climate, with improving client sentiment and better growth in Europe and the UK.
Company aims to become the world’s largest AI-driven services firm, investing $6-7 billion in global AI data centres and end-to-end AI infrastructure.
TCS maintains low visa dependency and steady hiring, adding nearly 19,000 employees in Q2 despite workforce optimization, to strengthen digital and AI capabilities.

Tata Consultancy Services (TCS) CEO K Krithivasan has moderated optimism about the business climate across the world, saying that the macro environment is beginning to exhibit 'a small positive bias' as the sentiment of clients is improving in markets. TCS is also experiencing greater positivity from its locations and teams, particularly in Europe and the UK, which have shown better growth compared to previous quarters.

While acknowledging that the consumer business segment, especially discretionary retail, remains under strain, Krithivasan claimed that most of the other verticals and geographies have been good, which reflects on an even recovery in client confidence and project activity.

Krithivasan said while certain projects had been suspended or delayed in the previous quarters, there has been a 'slight reduction' in doing so. Clients waiting to make long-term decisions are now reassessing their change approaches, and TCS is seeing improvement in such interactions. "It's too early to say all is behind us, but teams are more optimistic relative to Q1", he said, adding that the second half of the year is appearing more positive for business opportunities.

Complementing TCS's strategic focus, Krithivasan underlined the company's vision to be the world's largest AI-driven services company. In pursuit of that vision, TCS is investing big bucks in artificial intelligence infrastructure through its $6-7 billion AI data centre programme, which could eventually get extended worldwide.

Also Read: TCS and C-DAC Join Hands to Build India's Sovereign AI Cloud

The company is seeking to build end-to-end solutions for clients, from providing GPUs and AI infrastructure to supporting diverse AI models, from those that are housed by hyperscalers to those developed by companies like OpenAI and Anthropic. "There's plenty of unserved demand not only for data centre space but also from the AI needs of India, which we believe remain not fully met", he stated.

Krithivasan also spoke about concerns of increased H-1B visa scrutiny and anti-outsourcing posturing in the US, stating that the reforms have not been a big setback for TCS operations. He said that the company has purposefully kept dependency on onsite visas low and focused on local hiring in key markets. "We have utilized only around 500 H-1B visas till now this financial year", he added further, highlighting that the company's global delivery model remains robust.

On talent acquisition trends, Krithivasan clarified that the just concluded 19,755 employee cut at TCS is not reflective of a hiring halt. The firm actually added between 18,000 and 19,000 new staff in the September quarter, primarily to build its expertise in digital technologies and high-growth segments. "We are still hiring for the right skills", he stressed, underscoring TCS's focus on talent alignment with its long-term growth strategy through AI and digitalization.