Bengaluru, July 10 -- India's largest IT services company is passing on automation savings to clients in a phased manner to preserve its margins, as it seeks to change the way it engages with customers amid an AI onslaught that has investors writing off the $300 billion sector

Tata Consultancy Services Ltd (TCS) is billing clients based on outcomes rather than hours for AI-led engagements, before transitioning them to fixed-price contracts, its management said during a post-earnings conference call on Thursday.

"We are seeing, I would say, output commitment-based models, outcome-based models where we are committing through the AI program to deliver a business outcome in a fixed duration," said Aarthi Subramanian, its chief operating off...