Tata Consultancy Services (TCS) has restructured its AI.Cloud business into two standalone verticals, separating its Artificial Intelligence (AI) and Data services from its Cloud solutions. The decision comes amid rising enterprise demand in both domains and reflects the company’s strategy to scale operations more effectively and capture emerging opportunities.
Growing demand prompts structural shift
Originally formed two years ago, the AI.Cloud unit had consistently outpaced TCS’s average growth rates. With the market for AI-driven enterprise solutions expanding rapidly, the company has moved to sharpen its focus by establishing dedicated leadership and operational models for each vertical.
The newly created AI & Data unit will serve as a centralized function overseeing all AI and data-related initiatives. This integration is driven by the recognition that robust data infrastructure is critical for successful AI implementation. In many enterprise environments, AI adoption is hindered by fragmented or underdeveloped data ecosystems—an issue TCS aims to address by bundling data services with AI offerings.
Meanwhile, the Cloud unit will operate independently, continuing to focus on cloud infrastructure, migration, and modernization solutions. Both verticals will maintain alignment with TCS’s broader digital strategy but operate with separate leadership and execution mandates to enhance agility and responsiveness.
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Talent strategy and leadership realignment
To support the dual-vertical model, TCS is actively hiring AI specialists from outside the organization, while also investing in internal upskilling. The training curriculum is being revised to better equip employees with domain-specific capabilities in AI, data analytics, and cloud technologies.
Leadership roles have been clearly defined under the new structure. The AI & Data vertical will be led by the former head of the combined AI.Cloud unit, while the Cloud vertical will be managed by its former deputy. The AI function now has a global head overseeing strategic development, and a separate lead is responsible for the data function globally.
Positioning for long-term expansion
The restructuring underscores TCS’s ambition to capture a larger share of the fast-evolving AI and cloud services market. With both segments showing high growth potential and increasing enterprise relevance, the company sees the split as a necessary step to scale its capabilities and respond more effectively to client needs.
While TCS does not disclose separate revenue figures for AI services, the company’s investments in specialized talent, revamped training, and redefined business units reflect a long-term commitment to driving innovation and growth in these areas.
