Infosys and HCLTech are advising a huge shift in the conventional IT business models as the artificial intelligence (AI) is gradually altering the industry. At the Nasscom Technology and Leadership Forum 2025, HCLTech CEO C Vijayakumar said that the current 30-year old IT model is obsolete and unsustainable. “The business model is ready to be replaced. We already know that teams can produce two times the output with half the number of employees,” Vijayakumar stated, on the impact of AI on efficiency.
Parekh shared similar opinion, and warned that the industry should not sleep on the matter. “What CVK (C Vijayakumar) is saying is a call to action. We have to create and change,” Parekh said. He revealed that AI adoption has improved the software development efficiency by 7-15%, thus enabling Infosys to identify new revenue sources with the help of Generative AI.
The executives pointed out that AI is not just a nice additional feature but a strategic shift that requires IT companies to reconsider their approaches. Vijayakumar pointed out that companies must be ready to disrupt their current revenue streams and adapt to the changing market environment. He also indicated that there may be some geopolitical risks to the open source business model and, therefore, the models may move away from the current frameworks.
The demand for change is in line with comments made by TK Kurien, CEO of Premji Invest, who earlier criticized the traditional Time and Material (TNM) model, calling it ineffective and outdated.
In consequence, as AI unfolds, Infosys and HCLTech are steering the way towards a new, more flexible and creative IT environment.
