Keki Mistry, independent director at Tata Consultancy Services (TCS), addressed various concerns during the company’s Annual General Meeting (AGM). Mistry discussed the impact of high inflation on the company’s operations, stating that while wage bills and the cost of living and doing business will be affected, TCS has been able to mitigate the impact through productivity gains and operational excellence. He also acknowledged that high inflation will have a significant impact on the general cost of living and doing business.
Regarding the advent of Artificial Intelligence (AI), Mistry stated that it will lead to the automation of some tasks, but will also unlock new efficiency opportunities. He noted that recent advances in AI will result in higher levels of automation, allowing for the creation of a new human + AI operating model. This, in turn, will lead to better efficiency in certain service offerings, such as application development and IT and business process operations.
Mistry also addressed concerns around the cyber attack faced by Marks and Spencer, stating that TCS is not under investigation and that none of its systems or users were compromised. He added that the company has followed the laid out procedure and that there has been no impact on its business or customers due to data privacy concerns.
Additionally, Mistry discussed the impact of Global Capability Centers (GCCs) on TCS’s business, stating that clients continue to see significant value in partnering with the company. He noted that TCS is working on engagement models to collaborate with GCCs, which will create new opportunities for the company.
The meeting was notable for the absence of N Chandrasekaran, Chairman of Tata Sons, who was also absent from the AGM of Tata Consumer Products earlier in the week. Mistry expressed solidarity with those affected during these challenging times, likely referring to the Air India incident. Overall, Mistry’s statement highlighted TCS’s ability to adapt to changing market conditions and its commitment to innovation and customer satisfaction. Despite the challenges posed by high inflation and the rise of AI, TCS remains confident in its ability to navigate these changes and emerge stronger.