Focus back on TCS woes as former Al boss quits

Tata Consultancy Services Ltd's struggle to sell AI services and products to clients is back in the spotlight, even as the legacy offshoring business grapples with uncertain demand and barriers in the US, its largest market.

- Jas Bardia & Varun Sood

Siva Ganesan, who took over as AI.Cloud business head in July 2023 at India's largest software services provider, quit earlier this month, according to two people aware of the matter. His exit followed the appointment of company veteran Amit Kapur to lead its new Al unit.

Two bosses for its AI business in a little more than two years reflect TCS’s uncertainty regarding the new technology, especially since the business itself was overhauled at least three times in the past three years. The Mumbai-based firm is also laying off 12,200 mid-to senior-level executives, or 2% of its workforce, to become "future ready".

"It appears that TCS is lagging its peers on this issue and is making changes to address this market gap," said Peter Bendor-Samuel, founder of Everest Research. "TCS does not yet grasp how to drive to the new AI operating model and how to get their clients to also go on this journey.