Tata Consultancy Services (TCS) has declared the establishment of a fully owned subsidiary in India aimed at creating extensive AI and data centers with a total capacity of up to 1GW. The initiative showcases the company's strategic emphasis on evolving into an AI-centric technology services provider within a tough global tech landscape.

The announcement came alongside TCS’s Q2FY26 financial results, in which the company disclosed revenue of Rs 65,799 crore, an increase of 3.7 percent quarter-on-quarter and 7.6 percent year-on-year. Net profit, on the other hand, fell to Rs 12,075 crore compared to Rs 12,760 crore in the prior quarter. The IT department skipped its usual press conference this quarter because of a scheduling conflict with Ratan Tata’s anniversary.

Also Read: AI Appreciation Day: From Innovation to Transformation

In a significant strategic decision, TCS has purchased the Delaware-based Salesforce partner ListEngage for $72.8 million. The purchase will incorporate over 100 experts and exceed 400 Salesforce certifications into its Enterprise Solutions division in the United States, enhancing TCS’s skills in Marketing Cloud, CRM, Data Cloud, and AI consulting services.

Also Read: Karnataka to Become Quantum Capital of Asia Soon

The firm has further optimized its internal organization with the establishment of an Artificial Intelligence and Services Transformation department, headed by Amit Kapur, who presently manages TCS’s operations in the UK and Ireland.

Biswajit Maity, Senior Principal Analyst at Gartner, states that major Indian IT companies, such as TCS, are experiencing a phase of “uncertainty pause” as international clients postpone technology expenditures due to macroeconomic and geopolitical issues. Maity observed that although AI-driven demand is projected to grow in 2025, rising attrition may create operational difficulties for the firm.

Also Read: Jack Dorsey's BitChat Could be Signaling a New Shift in Messaging Paradigms

In July, TCS declared a 2 percent cut in its workforce affecting approximately 12,000 employees, attributing the move to skill mismatches instead of automation or AI job loss.