India's TCS partners with Anthropic to drive enterprise AI scaling


Figurines with computers and smartphones are seen in front of TCS: Tata Consultancy Services logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration

June 11 (Reuters) - India's ⁠Tata Consultancy Services has partnered with Anthropic ⁠to launch an alliance to drive enterprise ‌AI scaling, the country's largest software services exporter said on Thursday.

The partnership comes at a time when investors are ​concerned that AI tools will ⁠disrupt the traditional, labour-intensive ⁠business model of India's $315-billion IT sector. In February, ⁠Indian ‌IT services firms lost more than $62.8 billion in market capitalization, in part, after ⁠Anthropic launched an AI agent tool.

The Tata ​group company ‌will equip 50,000 associates with Anthropic's Claude ⁠and both ​will jointly take AI solutions to market for highly regulated sectors, it added.

TCS expects IT companies ⁠to slow down hiring, as the ​company moves towards having an equal number of employees and AI agents in its workforce, Chairman ⁠N Chandrasekaran said at the company's annual general meeting on Tuesday.

Last July, it cut more than 12,000 jobs, while headcount fell by more than ​23,000 on a net basis ⁠in the fiscal year ended March 2026.

Rival IT ​services firm Infosys struck a ‌similar partnership with Anthropic ​in February.

(Reporting by Urvi Dugar in Bengaluru; Editing by Mrigank Dhaniwala and Janane Venkatraman)

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