AI slows growth for Infosys and keeps it afloat at the same time
Indian IT services giant Infosys posted mixed quarterly results, with AI revenue now representing 10.5 percent of total incoming cash and growing 29 percent sequentially. However, overall revenue growth stalled at 1.5 percent year-on-year, below company expectations due to softer volume and lower-than-anticipated price increases amid competitive pressure. Customers expect Infosys to charge less when using AI, and those cost savings are embedded in multi-year contracts. CEO Salil Parekh noted that AI productivity discussions with clients influence pricing on large programs with three to five-year outlooks. Infosys intends to maintain margins at 21 percent and will not undercut competitors to
Key points
- AI revenue jumped 29% sequentially, now 10.5% of total Infosys revenue
- Overall revenue growth lagged at 1.5% year-on-year amid competitive pricing pressure
- Client expectations for AI-driven cost savings baked into multi-year contracts
- Infosys targeting 21% margins while resisting race-to-bottom pricing
Summary and key points written by AI from the headline and a short excerpt, so they can be incomplete or wrong. The Register did the reporting; read the original for the full story.
Read the full story at The Register
