Stable Discretionary Spending, No Layoffs Linked To GenAI: Infosys' Salil Parekh

Parekh stressed that, unlike other firms, Infosys regards technological progress as a chance for expansion and development rather than a method to downsize its workforce

Infosys CEO Salil Parekh said that the IT giant is not contemplating any type of job reductions, including rightsizing or downsizing, as a consequence of embracing generative AI (GenAI). He told CNBC-TV18, “Infosys is not looking at rightsizing, downsizing, or any kind of job cuts as has happened with others in the industry due to GenAI.”

Parekh stressed that, unlike other firms, Infosys regards technological progress as a chance for expansion and development rather than a method to downsize its workforce.

Numerous global technology companies have recently announced layoffs connected to the integration of AI or GenAI, citing AI efficiencies as a rationale for trimming their workforce. Amazon and Google have implemented substantial job cuts, partly attributing them to the adoption of new technologies such as AI.

Parekh elaborated on how Infosys is leveraging GenAI to boost operational efficiency and cut costs while maintaining employee levels. “For large organisations, all technologies will coexist. Over the next several years, we’ll have more and more people joining us who become experts in generative AI, and we will be serving the world’s large organisations," he explained.

The Bengaluru-based firm is also heavily investing in GenAI training for its workforce. “Six out of every eight Infosys employees are getting trained in different aspects of generative AI," Parekh noted.

In terms of hiring strategies, Infosys adopts an agile approach. “We see hiring come back as the economic environment improves and spending on digital transformation picks up. We have not shared an annual target on hiring and will remain agile based on the economic environment,” Parekh opined.

Regarding discretionary spending, Parekh noted that there haven't been significant changes compared to the previous quarter. "The discretionary spends approach looks similar at the end of Q4 and the start of Q1… and the same thing is visible to us today," he remarked.

Infosys is confident in achieving its constant currency revenue guidance for FY25, which is set at 1-3 per cent. “What gives us comfort is the large deals, the stability of discretionary spend, and our advancements in GenAI, where we have completely transformed the company," Parekh stated.