TCS AI And GenAI Pipeline Doubles To $1.5 Bn In Q1 FY25
This points to an increase from the USD 900 million reported in the previous quarter
India’s largest software exporter Tata Consultancy Services (TCS) has doubled its AI and generative AI pipeline to USD 1.5 billion in Q1 FY25. This points to an increase from the USD 900 million reported in the previous quarter, which itself had doubled in Q4 FY24.
In comparison, Accenture, a global IT consultancy firm, recently disclosed USD 900 million in generative AI bookings for Q3 2024, totaling USD 2 billion for the fiscal year.
“We continued to have strong growth momentum with clients continuing to prioritise AI infused Cloud adoption journeys. In this quarter, over 270 AI/GenAI engagements have been deployed or are in various stages of progress,” said TCS in its Q1 FY25 press release, commenting on its AI.Cloud unit's performance.
TCS has about 40,000-50,000 employees working in its AI.Cloud division, as revealed by the company during an earlier interview with BW Businessworld. During the last fiscal year, TCS was one of the first tech companies to pursue the integration of cloud computing and artificial intelligence within its operations through its AI.Cloud unit. This initiative was aimed at addressing the evolving requirements of its clientele. The AI.Cloud unit plays an important role in TCS’ AI architecture and facilitates strategic AI deployment across customers’ value chains.
India's top IT player posted strong financial results for the June quarter, reporting a consolidated net profit of Rs 12,040 crore, a 9 per cent increase from Rs 11,120 crore in the same period last year, increasing market expectations.
Revenue from operations rose to Rs 62,613 crore, up 5.4 per cent compared to Rs 59,381 crore in the corresponding quarter of the previous year. However, despite this year-on-year (YoY) growth, the company’s profit after tax (PAT) experienced a sequential decline of over 3 per cent from Rs 12,502 crore reported in Q4 FY24.
Interestingly, TCS reported a total workforce of 6,06,998 employees, with a positive addition of 5,452 employees in Q1 FY25 after posting an overall headcount decline in FY24.
