Infosys CEO Salil Parekh has expressed his belief that artificial intelligence will bring significant changes to India's decades-old IT pyramid model, but he insists that the technology will ultimately create more opportunities rather than reduce them. In an interview with The Economic Times, Parekh outlined how Infosys is adapting its hiring and training strategies in order to prepare for an AI-driven future.
Infosys Sees $300 Billion Addressable Market in AI Services
Parekh mentioned that Infosys sees a $300 billion addressable market in AI services, spanning six core areas. The company is also integrating AI into new offerings and to augment existing services, helping clients consolidate and expand their scope. Despite the muted growth guidance earlier this year, Parekh noted that macroeconomic conditions are improving, mainly after the geopolitical tensions in the Middle East began to ease.
Impact of AI on Pyramid-Shaped Talent Model of IT
For decades, Indian IT firms have relied on a pyramid-shaped talent model, with large numbers of entry-level recruits forming the base. Analysts now suggest AI could shift this toward a “diamond” structure, emphasizing specialised skills. Parekh acknowledged the shift but said it would be gradual: “My own sense is AI is going to create a lot more opportunity as we go into the future. Last financial year, we recruited 20,000 college graduates…this financial year will also have quite a similar type of number.”
Infosys is already training new hires in both traditional software development and foundation model tools, while also recruiting specialists at different levels. Parekh said the pyramid’s shape will evolve as AI services scale, but not overnight.
One Infosys Approach and Future Plans
Infosys has emphasised its “One Infosys” approach, ensuring teams collaborate across units to deliver integrated outcomes for clients. Parekh said no major structural changes are planned, but tighter collaboration and aligned incentives are being prioritised as the company nearly doubles in size compared to when he first took charge.
Token Usage and AI Adoption at Infosys
Infosys is encouraging employees to experiment with AI tokens, which measure usage of foundation models. Parekh described token usage as an “intermediate measure,” noting that the real impact lies in whether clients achieve growth and efficiency gains. While token usage is rising rapidly, Infosys has not set a formal target.
This article is based on reporting by the TOI Tech Desk, a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. Their coverage spans gadget launches, reviews, trends, in-depth analysis, exclusive reports, and breaking stories that impact technology and the digital universe.
