Infosys CEO Salil Parekh said the company is "seeing good demand for AI agents" for vertical and horizontal use cases. Infosys is also deploying AI agents within its own business process management unit.
Infosys and Wipro say that enterprises are pulling back on large projects amid an uncertain economy and tariffs, but are still looking to artificial intelligence to cut costs and automate operations.
Infosys CEO Salil Parekh said his company is seeing "good traction" with enterprises moving to SAP S/4HANA as well as the use of generative AI as enterprises look for efficiencies.
Constellation Research CEO Ray Wang said Infosys is facing a bevy of moving parts that the company will have to navigate. "The combination of AI arbitrage, margin compression, and exponential efficiency is having an effect on the overall market. Constellation expects that the overall service market will be flat to single digit growth for the next year," said Wang.
Indian services giants are optimistic about new technologies such as generative AI but are seeing clients pull back on discretionary projects as they aim for fast returns.
Temporary Slow Down Ahead
All indications from Constellation's 1000 person executive network show a temporary 3 to 6 month slowdown ahead. This pause in general IT spending impacts mostly the North American markets.
