Quick Take
- Infosys CEO Salil Parekh says AI proves IT services firms still matter, not fade away.
- He blames the hiring slowdown mostly on the weak macro economy, not on AI adoption.
- Infosys plans about 20,000 fresh graduate hires in 2026, matching last year’s intake pace.
In This Article
Infosys CEO Salil Parekh said that AI labs are proving why IT services companies still matter, calling the slowdown in hiring a result of the weak macro economy rather than AI, in an interview with The Times of India.
Parekh took over as chief executive of Infosys in January 2018, when boardroom turmoil had shaken investor confidence. Over nine years, he helped the company more than double revenue toward the $20 Bn (Rs 1,91,380 Cr) mark and build large deals worth over $100 Bn (Rs 9,56,900 Cr). His remarks land as Indian IT stocks face pressure over fears that AI could shrink the sector. All USD figures use the July 31, 2026 rate of Rs 95.69 to the dollar.
StartupFeed Insight
The most telling number here is not the revenue figure, it is the steady 20,000 fresher intake. When peers like TCS and Cognizant trim staff, Infosys is betting that AI grows the pipeline of work rather than cutting it. Founders and analysts tracking Indian IT should watch large deal wins closely, since that is where AI-led demand shows up first. StartupFeed expects Infosys to disclose a clearer AI revenue split, likely above 6% of total revenue, in its next two quarterly results before March 2027. That single figure will decide how the market prices the whole sector. By Harshvardhan Jain.
Infosys CEO Comments: Key Numbers
The Infosys CEO framed AI as an expansion of work, backed by the company’s current scale. Below are the core figures cited around his remarks, drawn from the interview and Infosys result filings.
| Metric | Detail | Notes |
|---|---|---|
| Annual Revenue Scale | $20.16 Bn (Rs 1,92,911 Cr) in FY26 | Grew 3.1% for the full year, per Infosys results |
| Fresh Graduate Hiring | About 20,000 in 2026 | Matches last year’s campus intake |
| AI Share of Revenue | About 5.5% and rising | Parekh flagged it as a future growth driver |
| Q4 FY26 Net Profit | Rs 8,501 Cr | Up 20.8% year-on-year, per company filing |
| FY27 Revenue Guidance | 1.5% to 3.5% growth | Below market expectations, a subdued outlook |
The standout detail is the gap between the muted FY27 guidance and the steady hiring plan, a sign that Infosys sees longer-term demand despite near-term caution.
About Infosys
Infosys is India’s second-largest IT services exporter, founded in 1981 by seven engineers led by N. R. Narayana Murthy, and headquartered in Bengaluru. It provides consulting, technology, and outsourcing services to enterprises across more than 55 countries. The company posted FY26 revenue of $20.16 Bn (Rs 1,92,911 Cr) and is chaired by co-founder Nandan Nilekani, with Salil Parekh as CEO.
Why does the Infosys CEO blame the macro economy?
The Infosys CEO argued that the industry-wide slowdown in fresh hiring stems mainly from a cautious global economy, not from AI replacing jobs. Parekh said the company had not carried out layoffs and did not expect to.
We have not done any layoffs in the last year and we don’t see anything of that sort coming up, Salil Parekh, CEO, Infosys.
He described the AI shift as structural rather than a near-term threat to jobs. While tasks for freshers will change, Parekh said demand for engineers stays strong. He added that discretionary client spending, tied to the macro cycle, drives much of the sector’s growth and slower demand.
How is AI becoming a growth driver?
AI contributes about 5.5% of Infosys revenue today and that share is climbing, according to Parekh. The company is deepening partnerships with firms such as OpenAI and Anthropic, while deploying in-house platforms to scale AI-led work.
Infosys says AI is unlocking more complex projects, which needs a workforce that is both technically skilled and comfortable with new tools. Parekh has previously pointed to thousands of AI projects and hundreds of deployed agents. You can read more in the Infosys official newsroom. The bet is that large clients keep funding AI work even when overall budgets tighten.
How does Infosys compare with peers?
Infosys is taking a different path from several peers, holding headcount steady while rivals adjust staff. The table below compares the AI and hiring stance across three large Indian IT names.
| Company | AI Revenue Signal | Workforce Stance |
|---|---|---|
| Infosys | About 5.5% of revenue | No layoffs, 20,000 fresh hires planned |
| TCS | About $1.8 Bn a year, roughly 5.8% | Announced workforce adjustments |
| Cognizant | Scaling AI delivery | Announced job cuts over the past year |
What sets Infosys apart is its choice to keep building an early talent pipeline while betting AI expands rather than shrinks the work.
What’s Next
Investors will watch Infosys’s next quarterly results for a clearer AI revenue split and any sign of large deal momentum before March 2027. A subdued FY27 guidance means each deal win carries extra weight. If AI revenue crosses 6% of the total, sector sentiment could shift fast. Will steady hiring prove smarter than the layoff route many peers chose?
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