After 20,000 layoffs, TCS is building a team of 8,900 forward deployed engineers, here is what they will do

TCS is going through a period of transformation. After laying off 20,000 workers, the company plans to bet big on AI with 8,900 forward deployed engineers (FDEs). Here is all you need to know.

In Short

• TCS to hire 8,900 forward deployed engineers in AI push
• The company also plans to acquire AI firms
• FDEs work with clients to tailor and integrate AI tools

It is no secret that the Indian IT industry is one of the most impacted due to the AI boom. Be it TCS, Wipro, or Infosys, everyone skips a beat whenever Anthropic or OpenAI launch a new tool. In recent months, the IT giants have taken hits to their stocks due to fears of a SaaSpocalypse, with layoffs across the board. But TCS believes that the era of AI will only create more business, and for that, it now plans to hire up to 8,900 forward deployed engineers (FDEs).

TCS is looking to build a team of forward deployed engineers that can range between 5,900 and 8,900 workers. "We would be ... ensuring that we have as many as 1 per cent to 1.5 per cent of our associates who could be what you would call FDEs," TCS CEO K Krithivasan told Reuters. As of June 30, 2026, TCS had a global workforce of 593,798 employees.

Apart from hiring FDEs, TCS also plans acquisitions in AI, data security and cybersecurity. The Indian IT giant believes that AI will create new business instead of weakening the outsourcing model.

This comes at a time when SaaS companies globally are facing a difficult time. Late last year, TCS nearly laid off 20,000 workers. Other players such as Wipro and Infosys have also cut jobs.

What do forward deployed engineers do?

To give you some context, forward deployed engineers, or FDEs, work directly with clients to speed up AI adoption and tailor tools to business needs. That is, the role of an FDE is to help a client integrate AI tools across their systems.

For example, if a bank wants to use AI to improve customer service, an FDE would work with the bank to understand its software, data and operating processes before integrating the model into that environment.

The role of FDE has skyrocketed in demand recently as OpenAI and Anthropic have formed their own AI service companies for this exact purpose.

In case you are wondering about the salary for FDEs, recent listings from Google Cloud show that the company is willing to pay a base salary in the range of $153,000 (roughly Rs 1.46 crore) to $222,000 (roughly Rs 2.12 crore) for US positions. OpenAI, meanwhile, puts the package between $198,000 (roughly Rs 1.89 crore) to $335,000 (roughly Rs 3.2 crore) in a similar US listing.

As India Today Tech reported previously, the rise in demand for FDEs may be a good sign for Indian IT players like TCS, as they have been helping integrate new tools in client systems for decades.

Krithivasan rejected the view that AI would disrupt the outsourcing business model, saying companies would still need partners such as TCS to integrate and deploy AI systems. “What you need is a deep knowledge of the customer environment to make it work. That is where we differentiate ourselves. This has nothing to do with cost arbitrage. It’s essentially because of the talent pool that we have built,” he said.

Do note that TCS has a deal in place with OpenAI to use ChatGPT Entreprise internally.

Previously, Infosys Chairman Nandan Nilekani expressed confidence in Indian IT players to grow in the AI era. He said, “AI will not replace companies like ours. It will amplify those who move with purpose and adapt with speed.”

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