Infosys Ltd., a major player in the IT sector, is exploring new acquisitions in the data analytics and software-as-a-service (SaaS) domains. This move is being driven by the growing interest from clients in generative artificial intelligence (AI). Despite the rapid adoption of AI technologies, CEO Salil Parekh says ‘no layoffs due to AI focus’ within the company. Salil Parekh, the CEO of Infosys, recently shared insights into the company’s strategic plans and highlighted the increasing demand for AI-related services among clients.
The CEO of Infosys has indicated that the company is keen on expanding its presence in the United States and Europe through targeted acquisitions. This expansion would help strengthen its position in these key markets, particularly in areas related to data analytics and SaaS. Parekh stated that potential acquisitions could be substantial, aligning with past deals such as the 450 million euro acquisition completed earlier this year. Infosys appears prepared to make multiple strategic investments, given its robust financial health and ability to integrate new businesses effectively.
No Layoffs Due to AI Adoption
Amidst AI advancements, CEO Salil Parekh says ‘no layoffs due to AI focus’ and reassures employees about job security. Contrary to concerns about the impact of new technologies on jobs, Parekh emphasized that Infosys does not foresee any layoffs resulting from the adoption of generative AI. He reassured that the integration of AI technologies would not lead to job cuts but rather support business growth. The CEO expressed optimism that AI would enhance productivity and create new opportunities, rather than displacing existing roles.
Infosys has made significant acquisitions to bolster its engineering capabilities. In January 2024, the company acquired InSemi Technology Services, an Indian chip-designing firm, for approximately ₹280 crore. This was followed by the acquisition of in-Tech Holding, a Germany-based provider of engineering R&D services, for around 450 million euros in April 2024. These acquisitions have expanded Infosys’s footprint in engineering services, particularly in the semiconductor and automotive sectors.
Generative AI Gaining Traction Among Clients
Infosys is experiencing a surge in client interest in generative AI technologies. The company is currently working on 225 Generative AI client programs and has trained over 250,000 employees in this area. The CEO compared the adoption of generative AI to the earlier waves of digital and cloud technologies, predicting a similar growth trajectory as enterprises begin to see substantial benefits from these innovations.
Even as Infosys pushes forward with AI, CEO Salil Parekh says ‘no layoffs due to AI focus,’ indicating a positive outlook. Looking ahead, Infosys plans to continue its focus on strategic acquisitions in sectors like data analytics and SaaS. The company is evaluating various firms in Europe and the U.S. to identify potential acquisition targets that align with its strategic goals. Key factors in these decisions will include strategic synergies, financial implications, cultural fit, and integration potential.
On the matter of a $3.9-billion GST tax demand, Parekh noted that Infosys has made necessary disclosures in the market and has no further updates at this time. Despite this, the CEO remains positive about the company’s growth prospects, citing a strong pipeline of large deals and robust financial performance in recent quarters.
Parekh highlighted that AI, particularly generative AI, is becoming increasingly important for businesses seeking to leverage large language models for software development, customer service, and other critical functions. Infosys is focused on becoming an AI-first entity, investing heavily in AI capabilities and scaling its digital reskilling programs to include the latest courses on generative AI. As generative AI continues to rise globally, Infosys is positioning itself at the forefront of this technological revolution, aiming to harness the potential of AI to drive business growth and innovation.
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