India’s largest software exporter Tata Consultancy Services (TCS) has $900-million worth of AI and generative AI projects in the pipeline as of the fourth quarter-ended March 31, said CEO and MD K Krithivasan, closing in with rival Accenture’s $1.1 billion in cumulative revenue in the first two quarters.
Speaking to the media at TCS’ Q4 earnings conference on April 12, Krithivasan said, “Subsequent to our launch of AI.Cloud unit, we are seeing an increased traction in our marketplace. We have won more than 200 engagements in AI so far this year.”
“The number of engagements going into production is steadily increasing. Our AI and Gen AI pipeline has doubled in the quarter to $900 million,” he added.
Krithivasan maintained that these engagements continue to be smaller projects.
Last month, Accenture had announced that they are seeing robust interest on generative AI, with cumulative revenues of $1.1 billion during the first two quarters (Accenture follows September-August financial year). It won Gen AI deals worth $600 million in the second quarter.
In February, at the Nasscom Technology and Leadership Forum (NTLF) 2024 in Mumbai, Krithivasan had said, “Generative AI in most places is being used for experimentations and PoCs (proof of concepts), it is too early to call it mainstream or say it is causing reduction in workforce. That’s not true.”
He had also added that AI and generative AI won’t lead to reduction in hiring or job displacement, it will only change the way the IT services giant is training its employees.
TCS reported its Q4FY24 earnings on April 12. Net profit grew by 9 percent YoY at Rs 12,434 crore. Revenue for the quarter rose 3.5 percent to Rs 61,237 crore in the three months ended March 31.
For the full year of FY24, revenue grew by by 6.8 percent YoY to Rs 240,893 crore. Net profit for the year was at Rs 46,585 crore, growing 10.5 percent YoY. Operating margin for the year was 24.6 percent.
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