India’s largest IT services company, TCS, has announced a strategic partnership with Anthropic. This partnership aims to help enterprises adopt and scale artificial intelligence.
The move comes at a crucial time. Investors worry that advanced AI tools will harm India’s $315 billion IT industry, which traditionally relies on large numbers of human workers. In fact, fears over new AI tools caused Indian IT firms to lose over $62.8 billion in market value earlier this year.
To adapt, TCS plans to train 50,000 of its employees to use Claude, Anthropic’s AI model. Together, the two companies will build and sell AI solutions tailored to highly regulated industries such as banking and healthcare. TCS’s main competitor, Infosys, made a similar deal with Anthropic recently.
This partnership signals a massive shift in how IT companies operate. TCS Chairman N Chandrasekaran stated that the company expects to slow human hiring. The long-term goal is to build a workforce made up of an equal number of human employees and AI agents.
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The shift is already reflecting in staffing numbers. According to company statements cited in media reports, TCS reduced its workforce by more than 12,000 employees last July. Moreover, its total headcount declined by over 23,000 workers during the fiscal year ending in March 2026. By embracing AI, TCS hopes to transform its business model from labour-heavy to tech-driven, ensuring it remains competitive in an evolving market.
