Generative AI (GenAI) emerged as the most transformative technology force of 2024, and Tata Consultancy Services (TCS) is placing itself firmly at the heart of this revolution. In the Annual Report for FY24-25, Chairman N Chandrasekaran called GenAI not merely another tech evolution but a “civilizational shift”, reshaping industries and defining the next era of computing, automation, and intelligence.

GenAI: A New Era Beyond Technology Cycles

In his letter to shareholders, Chandrasekaran stressed that GenAI is achieving near-human reasoning capabilities, marking a fundamental shift in how technology integrates with businesses and societies.

“GenAI is not just another tech cycle, it is a civilizational shift,” he stated, noting its acceleration through complementary advances in:

• Semiconductors

• Cloud computing

• Quantum technologies

• Robotics

• Energy innovation

He emphasized that GenAI is redefining analytics, customer experience, and marketing, while the emergence of autonomous robots and AI agents hints at the rise of "dark factories" and automated enterprise functions.

TCS WisdomNext™: Enterprise-Grade GenAI Platform

To capitalise on this shift, TCS launched WisdomNext™, its enterprise-grade GenAI platform, positioning the firm as a global leader in AI integration across business solutions.

In FY25:

• TCS built and deployed intelligent agent solutions across the value chain.

• It created the industry’s largest AI-trained workforce.

• AI was infused across all service offerings, from software development to customer support and analytics.

Four-Pronged Strategy for AI-Driven Future

Chandrasekaran outlined four clear strategic priorities for the future:

1. Build a large pool of AI agents to work alongside the human workforce.

2. Deliver business solutions through a human+AI hybrid model.

3. Invest in AI data centres and robust cloud infrastructure.

4. Partner with top-tier hardware providers, innovators, and AI startups.

This integrated approach, he believes, will allow every TCS client to become future-ready, resilient, and highly competitive in the AI era.

Autonomous IT and Agentic AI Systems

Chandrasekaran noted that IT and business services are rapidly moving toward autonomous operations, enabled by GenAI.

He shared three key trends:

• Software development is being redefined by AI-led modernisation, enabling rapid transformation of legacy code.

• Agentic AI is being deeply embedded into enterprise systems, improving decision-making, automation, and speed.

• AI will increasingly take over operational and support tasks, evolving from support systems to strategic drivers.

TCS Crosses $30 Billion in Revenue and $20 Billion in Brand Value

FY25 was also a milestone year in financial terms. TCS surpassed:

• $30 billion in annual revenues

• $20 billion in brand value

This revenue growth underscores the success of TCS’s proactive investments in AI, client relationships, and employee upskilling.

CEO K Krithivasan Reflects on Growth and Future Potential

K Krithivasan, CEO and MD of TCS, credited the company’s long-term investments and stakeholder trust as key enablers for its strong FY25 performance.

“This success is a testament to the early investments we have made in strengthening client relationships, building intellectual property, deepening employee capabilities, and expanding the technology ecosystem,” said Krithivasan.

He emphasized that AI-driven demand for modernization and business agility is reshaping enterprise expectations, especially in terms of:

• Operational transformation

• Cost optimization

• Risk management

• Compliance

$39.4 Billion in Total Contract Value in FY25

TCS reported a Total Contract Value (TCV) of $39.4 billion in FY25, with a balanced portfolio of:

• Large

• Medium

• Small-sized deals

Krithivasan said that this diversified deal pipeline augurs well for sustained growth, especially as clients focus on:

• Technology modernisation

• Vendor consolidation

• Data-driven business models

AI is Now a Business Imperative, Not a Choice

Krithivasan observed that significant innovation is occurring in AI infrastructure, data platforms, and AI-native applications.

He highlighted that:

• Enterprises are increasingly forced to adopt AI rapidly to meet customer expectations.

• Modernisation is no longer optional, and digital transformations are now AI-first.

Record Shareholder Payout Reflects Strong Financial Health

For FY25, TCS announced a shareholder payout of ₹45,588 crore, maintaining a payout ratio of 94%. The final dividend was ₹30 per share, bringing the total annual dividend to ₹126 per share.

This shows that even while TCS invests heavily in future technologies, it continues to deliver strong returns to its investors, reflecting solid financial discipline and market leadership.

The Road Ahead for TCS and the IT Sector

As TCS steers through this AI-first era, the company is expected to:

• Continue pioneering GenAI applications

• Lead the enterprise transformation journey

• Empower businesses with agent-based intelligent systems

With WisdomNext™, AI-trained talent, and a robust strategic framework, TCS is not just riding the GenAI wave — it's shaping its direction.

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