**TCS Reports $11 Billion Revenue from Disruptive Technologies**
**Tata Consultancy Services (TCS) has announced a significant milestone, reporting $11 billion in revenue from disruptive technologies, including $1.5 billion from artificial intelligence (AI). This marks a notable achievement for large homegrown IT services companies.**
In a recent announcement, Tata Consultancy Services Ltd (TCS) revealed that it generated $11 billion in revenue from disruptive technologies, with $1.5 billion specifically attributed to artificial intelligence (AI). These figures are annualized as of the end of the September quarter. K. Krithivasan, CEO and Managing Director of TCS, highlighted that when excluding traditional services like application development and maintenance, testing, and business process services, the new-age services contribute significantly to the company’s revenue, all growing at a rate surpassing TCS’s overall average.
However, it is important to note that TCS’s AI revenue of $1.5 billion is not directly comparable to Accenture’s reported $2.7 billion in AI revenue. Accenture’s chair and CEO, Julie Sweet, clarified that their advanced AI business encompasses only generative AI, agentic AI, and physical AI, excluding data, classical AI, or AI utilized in service delivery. TCS has yet to define its criteria for AI-related revenue.
During the company’s annual investor day, TCS management addressed concerns regarding the impact of generative AI on outsourcing services, reaffirming their commitment to maintaining an aspirational profitability target of 26-28%. Krithivasan emphasized that each new technology cycle integrates technology deeper into business operations, leading to increased spending as its value grows. He noted that the current shift towards generative AI represents a fundamental change, differing from previous technological disruptions due to its scale, speed, and potential benefits.
In a strategic shift, TCS, headquartered in Mumbai, is moving away from its traditionally conservative approach by making bold investments. Recently, the company announced a commitment of $6.5 billion over six years to develop 1 GW of data center capacity, signaling a proactive stance in the evolving tech landscape.
**Conclusion**
TCS’s impressive revenue from disruptive technologies, particularly in AI, showcases its adaptability and forward-thinking approach in a rapidly changing industry. As the company continues to invest in new technologies, it positions itself for sustained growth and innovation in the future.
**FAQ**
**What is TCS’s revenue from AI?**
TCS reported $1.5 billion in revenue from artificial intelligence as part of its total $11 billion revenue from disruptive technologies.