After showing little to no confidence in generative AI in the last quarter, Infosys revealed in its Q4FY24 quarterly reports that the IT giant is seeing excellent traction with its clients for generative AI work. However, this quarter, as well, it did not disclose the revenue from generative AI.
Meanwhile, during its recent earnings, TCS revealed that it has an AI and generative AI pipeline worth $900 million, as CEO and MD K Krithivasan revealed during the Q4 2024 earnings call. This figure nearly matches the revenue achieved by rival Accenture, which totalled $1.1 billion in the first two quarters.
“We’re working on projects across software engineering, process optimisation, customer support, advisory services, and sales and marketing,” said Salil Parekh, Infosys CEO. We’re working with market-leading open access and closed large language models,” he added, saying that Infosys feels good about its work with generative AI.
Infosys also announced the acquisition of in-tech for 100% of the equity for €450 million. According to a company filing, the acquisition is anticipated to be completed within the first half of fiscal year 2025, pending the satisfaction of customary closing conditions. This strategic move enhances Infosys’ capabilities in the engineering R&D space and strengthens its commitment to clients navigating digital engineering.
For this acquisition, Infosys has received approvals from regulatory authorities in Germany, Romania, Austria, India and such other regulatory approvals as required.
“We are not, at this stage, publicly sharing what the Generative AI revenue is, but we have tremendous capability, a good leading market position, and we feel, in generative AI, we are very strong in the capabilities,” he said.
Giving an example, Parekh said that in software development, Infosys has generated over 3 million lines of code using one of the generative AI and large language models in the public domain.
Infosys recorded $4.4 billion worth large deals, which is the highest ever last deal value in the financial year for the company.
“In several situations, we’ve chained the large language models with client specific data within our projects. We’ve put generative AI in our services and developed playbooks for each of our offerings,” said Parekh, which is all part of Infosys Topaz generative AI offerings.
He also said that Infosys is committed to ethical and responsible use of AI. Infosys became the first IT services company globally to achieve the ISO 42,001 to 2020 disease certification.
Parekh added that since data has become the critical enabler for making generative AI successful in an enterprise AI deployment, the IT giant is making sure that the access to the data for its client remains streamlined.
Infosys reported a 30% increase in consolidated net profit, reaching Rs 7,969 crore for the quarter. This is in contrast to the INR 6,128 crore profit reported during the same quarter last year.
Parekh said that Infosys has trained 8 out of 10 of its total employees in generative AI, but that has not made any impact on its hiring strategy. In September last year, NVIDIA announced a partnership with Infosys for revolutionising the world of enterprise AI. It also unveiled plans to establish the NVIDIA Center of Excellence’, dedicated to training and certifying 50,000 of its employees in NVIDIA AI technology.
The IT giant reported a decrease in its workforce for the fiscal year 2024, marking a decline of 25,994 employees, a first since at least 2001. The company’s total headcount for FY24 stood at 317,240, a 7.5% reduction compared to the previous year.
In terms of quarterly changes, Infosys saw a reduction of 5,423 employees, marking the fifth consecutive quarter of decline. Additionally, the attrition rate for the fourth quarter on a last twelve-month basis fell to 12.6% from 12.9%.
TCS also announced that it has trained over 350,000 employees in AI/ML, including GenAI. Moreover, TCS is also a launch partner for the newly announced AWS Generative AI Competency.
Parekh also consistently highlighted Infosys’ expansion in Europe with its latest proximity centre in Sofia, Bulgaria. The IT giant is committed to fostering local talent and nurturing innovation, aiming to hire, attract, and upskill 500 new employees over the next four years.
Recently, Infosys also announced a strategic partnership with Intel, integrating Intel technologies such as 4th and 5th Gen Intel Xeon processors, Intel Gaudi 2 AI accelerators, and Intel Core Ultra into Infosys Topaz. This collaboration aims to offer AI-first services, solutions, and platforms to accelerate business value through generative AI technologies.
