According to reports, TCS has decided to strengthen its partnership with Microsoft to develop AI-based software services. The collaboration with Azure OpenAI, formed by Microsoft and OpenAI, involves using the cloud-based AI tool GitHub Copilot.

This tool is being applied to offer various solutions like fraud detection for financial services and personalised customer services for retailers. The goal is to improve profit margins, as mentioned by TCS‘s CEO K Krithivasan in an interview with Bloomberg.

The partnership’s focus is on creating industry-specific solutions for the market. However, the timeline for achieving significant market impact remains uncertain, with estimations suggesting it could take at least a couple of quarters.

TCS is incorporating AI technology into its software offerings, which is proving beneficial in securing substantial business deals. Krithivasan, who took on the role of CEO in June, has also initiated organisational changes to better leverage the expertise of senior executives and enhance client relationships.

As traditional outsourcing faces margin pressures due to economic concerns and geopolitical tensions, Indian IT firms are shifting their focus to technologies such as big data, machine learning, analytics, cloud computing, and AI to help clients revitalise their businesses and remain competitive against agile startups.

TCS’s CEO Krithivasan emphasised the commitment to align more closely with clients’ future investments and enhance capabilities for deeper engagement with these transformations. “We will continue to enhance our capabilities so that we can participate more,” he said. 

Similarly, in May, TCS also announced that it is partnering with Google to offer its cloud generative AI services, Vertex AI, for its Model Garden, and offering solutions for its customers.