Artificial intelligence is beginning to compress parts of the traditional IT services model, even as it opens up new growth areas, as per Infosys chief executive officer Salil Parekh. Speaking at the company’s Investor AI summit, Parekh acknowledged the pressure on existing services.
“We see that (pressure) is visible, but it’s not large, and it’s not insignificant. But we don’t see an acceleration of that either at this stage.” Compression here refers to AI-driven productivity, reducing the effort and time needed to deliver IT services, which can put pressure on billing and revenue in traditional time-and-materials contracts.
The company has highlighted a $300 to 400 billion dollar opportunity across six AI-led service areas. But when asked about the net impact after accounting for compression, Parekh said, “We have not quantified that number for any external use at this stage.
We have said that the expansion number from what we see today looks larger than the compression.”
This article is written by Padmini Dhruvaraj
