Infosys

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Ujjaini Dutta

BENGALURU, Oct 9 (Reuters Breakingviews) - Few people know Tata Consultancy as well as N Chandrasekaran. He spent three decades at the $78 billion outsourcer, including eight years as CEO before becoming its chair and also taking charge of Tata Sons, the holding company of the wider Indian conglomerate. But with Chandra now at the centre of a power struggle at the salt-to-steel group, concerns over his bandwidth to steer the IT giant through AI disruption will surface.

The company's latest quarterly earnings on Thursday underscore the problem. Revenue for the three months to the end of September grew to about 732 billion rupees ($7.6 billion), up just 2.8% in constant currency terms. Though its annualised AI services revenue jumped 19% to $3.1 billion from the preceding three months, it accounts for just 10% of the top line. Tata Consultancy's TCS.NS deal pipeline at $9.6 billion was down 4% year-on-year. The net margin contracted 60 basis points to 19%.

To shore up growth, Chandra has stepped up his direct involvement in recent months. That has coincided with a flurry of unusual deals. In August, Tata Consultancy acquired Porsche's P911_p.DE automotive and consulting unit. Last week, it took over US consumer electronics retailer Best Buy’s BBY.N global capability centre in India. The IT firm has also pivoted into capital-intensive investments by building data centres, with OpenAI as one of the customers.

For Chandra to be a hands-on chair while the company confronts the AI challenge makes sense. He knows the company well, and Tata Consultancy is the conglomerate's cash engine, accounting for 89% of Tata Sons' profit for the 2026 financial year. Problem is, he is also chair at at least seven other group companies including Tata Steel TISC.NS, Tata Motors <TAMO.NS, TATM.NS, Tata Power TTPW.NS and Air India. With both the airline and the IT group in need of a big reset, Chandra already looked spread thin.

Now he's locked in an all-out war with Noel Tata, chair of Tata Trusts, which owns 66% of Tata Sons. Not only does that limit the time Chandra has to focus on the operating companies but it also raises a question mark over how long he'll be around to try. Tata Consultancy investors appear to favour him staying: shares fell when his position looked most threatened by the trusts and rebounded after Chandra dug in his heels.

Either way, it leaves K Krithivasan squarely with the job of seeing Tata Consultancy through the AI disruption and emerging from his predecessor's shadow. Since taking over as CEO in 2023, around the time the new tech cycle began disrupting IT services firms, Tata Consultancy's shares have lagged Infosys INFY.NS, HCLTech HCLT.NS and Wipro WIPR.NS. The shares rallied as much as 4% on Friday morning on faster AI revenue growth but that looks through a rather obvious key-man risk.

https://www.reuters.com/graphics/BRV-BRV/akpelnoaqvr/chart.png

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CONTEXT NEWS

Tata Consultancy Services on October 8 reported revenue of 731.88 billion Indian rupees ($7.6 billion) in ⁠the quarter to the end of September 2026, up 11% year-on-year, or 2.8% in constant currency terms.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

In paragraph 2 corrects company name to HCL

By Dan Rosenzweig-Ziff

WASHINGTON, Oct 8 (Reuters) - US Vice President JD Vance said on Thursday that the federal government was suspending Microsoft from a program that allows skilled foreign workers to gain permanent residency, citing alleged fraud.

Secretary of Labor Keith Sonderling added that some of the largest IT firms in the world would also be suspended from that program, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, as well as Adobe. Microsoft did not immediately respond to a request for comment.

He also said nine universities, including Harvard, Yale and Stanford, would be investigated for allegedly bringing in international students to undercut American wages. Labor Inspector General Anthony D'Esposito said subpoenas had already been served.

(Reporting by Dan Rosenzweig-Ziff; Editing by Mark Porter)

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Adds plant location in paragraph 5, details on state funding in paragraph 17

By Kentaro Okasaka and Sam Nussey

TOKYO, Oct 7 (Reuters) - Japan's Rapidus, with $15 billion in state backing, is tying up with chip design firms as it seeks to answer a major question hanging over the country's tech ambitions: can a company with no manufacturing track record begin producing cutting-edge chips in a year?

Only a handful of companies globally can make the 2-nanometre chips Rapidus wants to produce, which requires the industry's most advanced manufacturing technology. Chips produced with cutting-edge processes offer faster, more energy-efficient performance than earlier-generation chips.

The leading companies are Taiwan's TSMC 2330.TW, which spent decades refining its processes and dominates leading-edge chipmaking, South Korea's Samsung Electronics 005930.KS, which began producing 2-nm chips last year, and Intel INTC.O.

The Rapidus venture, set up in 2022, must secure customers ahead of the planned launch of 2-nm chip production in the second half of the next fiscal year, a project that Prime Minister Sanae Takaichi is counting on to rebuild Japan's semiconductor industry.

Rapidus said on Monday it would partner with 17 companies including US chip design software firm Synopsys SNPS.O and India's Infosys INFY.NS to help customers design chips, as the company seeks to secure manufacturing contracts.

"The biggest question for Rapidus is still who will actually fill the fab," said Nori Chiou, investment director at White Oak Capital, using the industry terminology for a semiconductor fabrication plant. Rapidus' plant will be based in Hokkaido.

While Monday's announcement was not yet evidence of commercial traction, he said, it represented incremental progress.

Failure of the project would be a major setback for Japan's industrial strategy and could reverberate across the country's chip sector, as it seeks to strengthen supply chain resilience amid rising regional tensions and concerns over a possible Chinese move against Taiwan that could disrupt global supplies.

HEAVYWEIGHT COMPETITION

The unprecedented AI investment boom has fuelled demand for semiconductors and computing infrastructure, a trend Rapidus hopes to capitalise on.

TSMC "will continue to dominate the majority of the market. But there are plenty of customers in the remaining 20% who cannot get capacity from TSMC because they are low on its priority list or their orders are small," said Akira Minamikawa, an analyst at Omdia.

Rapidus CEO Atsuyoshi Koike expressed confidence there was enough market demand to support an additional leading-edge manufacturer.

"One or two companies are nowhere near enough," Koike told Reuters.

Some potential customers remain cautious.

"We're already having TSMC make our chips, so we can't switch everything to Rapidus. If it didn't work out, we couldn't go back to TSMC, so we have to be cautious," said one executive who declined to be identified because the deliberations are private.

Customers may use Rapidus to diversify supply chains, while the presence of a leading-edge manufacturer could also benefit Japan's materials and equipment makers, Minamikawa said.

Japan's global semiconductor market share has fallen from about 50% in the 1980s to less than 10% today. Chipmakers operating in Japan include memory producer Kioxia 285A.T. TSMC itself is also present through a partnership with Sony 6758.T.

Other government-backed initiatives include Noetra, which is developing a foundational model for physical AI and robotics.

Japan's industry ministry in April announced it had approved an additional $4 billion in assistance to Rapidus, bringing total research and development support to $15 billion.

TECHNOLOGICAL HURDLES REMAIN

Preparations for mass production were progressing on schedule and the environment was better than envisioned when Rapidus was founded in 2022, CEO Koike said.

Yet significant technological hurdles remain. Rapidus continues to work with IBM IBM.N and has started pilot operations, but experts said commercial success remains far from guaranteed.

"Running a chip fab around the clock, maintaining stable, consistent yields and continuing production in a way that makes the business viable is extremely difficult," said Kazuyoshi Saito, an analyst at IwaiCosmo Securities.

"Even Samsung ... has struggled."

Beyond proving its technology, Rapidus faces the longer-term challenge of building a profitable business. The company has targeted an initial public offering for around the financial year ending March 2032.

"Its success or failure won't be known for 10 years and no one will be able to take responsibility" if it is not a success, said a government official.

Still, Rapidus' backers have ambitious plans. A listing and manufacturing operations in the United States are possibilities, said Daishiro Yamagiwa, a lawmaker who heads the ruling Liberal Democratic Party's parliamentary group on chip strategy.

(Reporting by Kentaro Okasaka and Sam Nussey; Additional reporting by Fanny Potkin; Editing by Miyoung Kim and Sonali Paul)

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By Kentaro Okasaka and Sam Nussey

TOKYO, Oct 7 (Reuters) - Japan's Rapidus, with $15 billion in state backing, is tying up with chip design firms as it seeks to answer a major question hanging over the country's tech ambitions: can it attract enough customers to its state-of-the-art chip factory?

The venture said on Monday it would partner with 17 companies including US chip design software firm Synopsys SNPS.O and India's Infosys INFY.NS to help customers design chips.

It needs to secure customers ahead of the planned launch of 2-nanometre contract chip production in the second half of the next fiscal year, a project that Prime Minister Sanae Takaichi is counting on to rebuild Japan's semiconductor industry.

"The biggest question for Rapidus is still who will actually fill the fab," said Nori Chiou, investment director at White Oak Capital. Monday's announcement was "not yet evidence of commercial traction," he said, but showed incremental progress.

It also faces technological and competitive hurdles as it looks to make 2-nm chips, which offer faster, more energy-efficient performance than earlier generation chips, at its fabrication plant.

Failure of the project would be a major setback for Japan's industrial strategy and could reverberate across the country's chip sector, as it seeks to strengthen supply chain resilience amid rising regional tensions and concerns over a possible Chinese move against Taiwan.

HEAVYWEIGHT COMPETITION

The unprecedented AI investment boom has fuelled demand for semiconductors and computing infrastructure, a trend Rapidus hopes to capitalise on.

It is up against Taiwan's TSMC 2330.TW, which spent decades refining its processes and dominates leading-edge chipmaking, South Korea's Samsung Electronics 005930.KS which began producing 2-nm chips last year, and Intel INTC.O.

TSMC "will continue to dominate the majority of the market. But there are plenty of customers in the remaining 20% who cannot get capacity from TSMC because they are low on its priority list or their orders are small," said Akira Minamikawa, an analyst at Omdia.

Rapidus CEO Atsuyoshi Koike expressed confidence there is enough market demand to support an additional leading-edge manufacturer.

"One or two companies are nowhere near enough," Koike told Reuters.

Some potential customers remain cautious.

"We're already having TSMC make our chips, so we can't switch everything to Rapidus. If it didn't work out, we couldn't go back to TSMC, so we have to be cautious," said one executive who declined to be identified because the deliberations are private.

Customers may use Rapidus to diversify supply chains, while the presence of a leading-edge manufacturer could also benefit Japan's materials and equipment makers, Minamikawa said.

Japan's global semiconductor market share has fallen from about 50% in the 1980s to less than 10% today. Chipmakers operating in Japan include memory producer Kioxia 285A.T and TSMC, which has partnered with Sony 6758.T.

Other government-backed initiatives include Noetra, which is developing a foundational model for physical AI and robotics.

TECHNOLOGICAL HURDLES REMAIN

Preparations for mass production are progressing on schedule and the environment is better than envisioned when Rapidus was founded in 2022, CEO Koike said.

Yet significant technological hurdles remain. Rapidus is working with IBM IBM.N and has started pilot operations, but experts say commercial success remains far from guaranteed.

"Running a chip fab around the clock, maintaining stable, consistent yields and continuing production in a way that makes the business viable is extremely difficult," said Kazuyoshi Saito, an analyst at IwaiCosmo Securities.

"Even Samsung ... has struggled."

Beyond proving its technology, Rapidus faces the longer-term challenge of building a profitable business. The company is targeting an initial public offering by around the financial year ending March 2032.

"Its success or failure won't be known for 10 years and no one will be able to take responsibility," said a government official, pointing to the government-backed Cool Japan Fund, which booked investment losses.

Still, Rapidus' backers have ambitious plans. A listing and manufacturing operations in the United States are possibilities, said Daishiro Yamagiwa, a lawmaker who heads the ruling Liberal Democratic Party's parliamentary group on chip strategy.

(Reporting by Kentaro Okasaka and Sam Nussey; Additional reporting by Fanny Potkin; Editing by Miyoung Kim and Sonali Paul)

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Sept 16 (Reuters) - Infosys Limited INFY.NS:

• INFOSYS ANNOUNCES EXPANSION OF INDORE DEVELOPMENT CENTER

Further company coverage: INFY.NS

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Adds analyst comment in paragraphs 4,5

By Urvi Dugar

Sept 15 (Reuters) - Indian IT stocks .NIFTYIT surged as much as 5.2% on Tuesday, tracking gains in global software shares, after AI executives called for a slower pace of development amid concerns over the technology's risks.

Shares of software companies globally have been battered by concerns that AI could make parts of their business obsolete. India's $315 billion IT industry is seen as especially vulnerable because of its reliance on billable hours, leaving IT stocks among the market's worst performers over the past year.

The IT index was set for its best session since July 2. It has fallen about 21% this year, more than twice the decline of the benchmark Nifty 50 index .NSEI.

A slower pace of AI development could give Indian IT firms more time to adapt to new models and manage their costs, rather than continually spending to keep pace with the rapidly evolving technology, said Piyush Pandey, an analyst at Centrum Broking.

"Faster AI development increases uncertainty for enterprises," Pandey said, adding that Tuesday's gains were a tactical bounce rather than a sign of a fundamental improvement in the sector's outlook.

HCLTech HCLT.NS led gains on the index on Tuesday, climbing 6.21% after eight straight sessions of declines. Infosys INFY.NS and TCS TCS.NS rose 4.72% and 4.76%, respectively.

The rally comes after Anthropic CEO Dario Amodei called on AI companies to slow the rate at which they advance model capabilities after mounting fears that the technology could be misused. Both Elon Musk, who runs xAI, and OpenAI CEO Sam Altman said they agree with Amodei.

Alarm about the potential harm from AI intensified earlier this month when Anthropic researcher Jacob Coxon resigned, saying AI companies are "gambling with our lives."

Indian IT outsourcing companies including Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS and HCLTech HCLT.NS have been rejigging their business models in response to AI-led disruption, increasingly tying fees to performance outcomes instead of hours worked, as clients demand steep price cuts and more productivity.

(Reporting by Urvi Dugar in Bengaluru; Editing by Abinaya V and Sonia Cheema)

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Sept 3 (Reuters) - Infosys Limited INFY.NS:

• INFOSYS - GUIDEVISION UK, IN-TECH AUTOMOTIVE ENGINEERING BEIJING CO VOLUNTARILY LIQUIDATED

Source text: ID:nNSE1vjG0T

Further company coverage: INFY.NS

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By Sai Ishwarbharath B, Abhirami G and Haripriya Suresh

BENGALURU, August 21 (Reuters) - Artificial intelligence promised to disrupt India's IT industry and it is delivering.

Outsourcing giants like Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS, HCLTech HCLT.NS and Cognizant CTSH.O are rejigging business models, increasingly tying fees to performance outcomes instead of hours worked, as clients demand steep price cuts and more productivity.

Industry executives also say they are losing some work entirely as customers use AI to shift tasks in-house, while all the uncertainty that the new technology has brought is resulting in shorter contracts.

And where once the big IT companies won contracts because they could point to their huge employee base, that has become less and less of an advantage as AI automates more and more tasks — levelling the playing field for smaller rivals which have jumped at opportunities to snatch business.

"It's a desperate market for the service providers. The odds are very much in favour of clients," said Jimit Arora, CEO of research and advisory firm Everest Group.

Software companies globally have been battered by worries that AI will render key parts of their business obsolete, but India's IT industry — worth $315 billion in annual revenue — is the most obvious victim with its traditional reliance on billable hours.

The Nifty IT index .NIFTYIT has tumbled by a fifth this year, with its 10 constituents losing a combined $73 billion in market value.

CONTRACTS SHIFT TO MEASURABLE OUTCOMES

These days, pricing for contracts is more likely to be dictated by performance outcomes.

TCS Chief Executive K Krithivasan told Reuters that about 80% of the company's contracts within its finance, human resources and other business services segment are now based on outcome performance measures.

That number represents a doubling since AI went mainstream in late 2023, said a person with knowledge of the matter, who was not authorised to speak to media and declined to be identified. TCS did not respond to a request for comment.

Other examples in the industry include an AI and automation deal Cognizant CTSH.O struck with Daimler Truck DTGGe.DE in February. It stipulated AI-related cost savings would be split between the vendor and the client, according to people familiar with the terms.

"With AI, the fundamentals are shifting," Cognizant said in a statement to Reuters, though it declined to comment on specific contracts. "Clients now expect more value and measurable outcomes, and we are re-forging our model for that reality."

Daimler Truck did not respond to a request for comment.

A separate multiyear cloud management deal forged in June 2025 was structured so HCLTech will not be paid by German utility E.ON EONGn.DE for the first year, with payments from the second year tied to efficiency gains and specific business outcomes, according to two people familiar with the agreement.

E.ON declined to comment, while HCLTech did not respond to a request for comment.

CLIENTS WANT MORE BANG FOR THEIR BUCK

As AI drives productivity gains, clients have become increasingly vocal about getting more for less.

Persistent Systems PERS.NS CEO Sandeep Kalra told Reuters that the IT provider's clients were demanding the same work for 25% to 30% less while expecting faster delivery and higher productivity.

But on the plus side, AI is helping Persistent win larger deals than it would have previously.

"The demarcation of a scale player only by revenue is not necessarily a big thing today," he said.

IT executives and analysts alike say competition from mid-sized firms has become brutally fierce.

Many customers now want rapid development of pilot programmes and smaller firms are winning mandates by deploying senior leaders quickly and offering flexible pricing, says Phil Fersht, CEO and chief analyst at HFS Research.

"Many Tier 2 firms have been more agile and hungry in this phase," he said.

Both Persistent and Coforge COFO.NS, another mid-sized IT services provider, have seen revenue in dollar terms grow by double digits for at least eight quarters in a row. In April-June, revenue for Persistent surged 16%, while Coforge's sales jumped by a third.

In contrast, TCS, Infosys, Wipro and HCLTech had subdued growth of 1% to 3%.

IRRATIONAL EXUBERANCE?

As pressure from clients grows, some firms are making rash decisions, says Tech Mahindra TEML.NS CEO Mohit Joshi.

Some rivals are factoring in productivity gains of 70% to 80% over five to seven years and guaranteeing prices despite rising chip costs, Joshi told an analysts' call last month, adding that his company had chosen not to take such risks.

"Clearly, there is a ton of competition out there, and our competition at times is doing irrational things," he said.

Infosys last month also told analysts it had walked away from contracts that were no longer economically viable.

TCS's Krithivasan said that so far the company has been able to offset AI-related downward pressure on revenue with new work.

"But how fast and how much more we are able to go ahead of the (revenue) deflation will determine the growth going forward," he added.

TCS is also boosting its numbers of engineers who embed with clients to accelerate AI adoption and is hunting for AI acquisitions.

It is thus far the only Indian IT services provider to have announced mass layoffs in the AI era, implementing cuts of more than 12,000 last year. But companies have flagged that their traditional role as huge hirers of new recruits may be winding down.

The country's IT giants will no longer need large ranks of entry-level engineers, according to former Infosys CFO V. Balakrishnan.

"The pyramid model is gone. With coding agents, we no longer need basic coding," he said.

(Reporting by Sai Ishwarbharath B, Abhirami G and Haripriya Suresh in Bengaluru; Editing by Dhanya Skariachan and Edwina Gibbs)

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.

By Ujjaini Dutta

BENGALURU, Aug 14 (Reuters Breakingviews) - India's $315 billion IT industry was once easy for investors to read: work was largely billed on human effort, so headcount was a straightforward indicator of revenue growth and earnings potential. That correlation is fraying as AI tools made by Anthropic, OpenAI and others mean IT companies can serve clients with fewer people and increase revenue without hiring. New measures are needed to differentiate between firms adapting fast enough and those who can't keep up.

Traditional contracts paid IT companies for hours worked and engineers deployed. That model is fading fast, especially at smaller and more agile firms. Yet the distinction is not reflected in share prices. Investors have indiscriminately dumped shares in giants led by $90 billion Tata Consultancy Services TCS.NS , Infosys INFY.NS and Wipro WIPR.NS, alongside stakes in smaller providers like Blackstone-backed BX.N Mphasis MBFL.NS. The benchmark Nifty IT index .NIFTYIT is down 17% this year.

Some companies are starting to report "AI revenue". Venu Lambu, the boss of $15 billion LTM LTIM.NS, reckons it will become the industry's defining metric but that seems unlikely. At Tata Consultancy, this newly adopted measure is poorly explained and, worse, lumpy. A more nuanced approach is probably required.

From March next year, $5 billion Mphasis,will report “key operating metrics” such as annual recurring revenue and platform attach rate. This suggests it sees a growing share of future revenue from selling software-like services. The firm already generates less than half of its topline from the traditional "Time and Materials" billable hours model. Similarly, $8.5 billion Coforge is building up a portfolio of AI-related software products and tools including 8 AI platforms, 22 AI assets and over 100 reusable AI agents, per its latest post-earnings call.

AI is not only making engineers more productive; it is also encouraging IT firms to package their expertise into reusable software platforms as clients increasing value speed of deployment. So instead of building a custom customer-service application from scratch, an outsourcer could deploy a pre-built AI platform across dozens of clients and charge subscription fees.. Attach rate would show how often clients purchase additional products or services after adopting a platform, offering a clue about future revenue growth.

This shift to a "services-as-software" model is imminent, says Sanjeev Narsipur, Managing Director and Lead of Digital, AI and Technology Services at Alvarez & Marsal. And as this line blurs globally, AI developers OpenAI and Anthropic are also moving into enterprise services. Whatever the way forward, after decades of falling back on old metrics, IT firms need to find new ways to demonstrate their worth.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

Blackstone-backed Mphasis sees a shift toward "recurring, platform-attached revenue” the company said on July 24 in a post-earnings call. In May, the company said it would start reporting “key operating metrics” such as annual revenue runrate, platform attach rate and net retention rate for the year ending March 2028.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

Aug 4 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS - HDFC BANK DEPLOYS FINACLE WEALTH MANAGEMENT SOLUTION FOR DIGITAL TRANSFORMATION

• INFOSYS - DEPLOYMENT OF FINACLE WEALTH MANAGEMENT FOR HDFC BANK’S DIGITAL TRANSFORMATION

Source text: ID:nBSE6SJHv2

Further company coverage: INFY.NS

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July 26 - Infosys Ltd INFY.NS:

• INFOSYS - FRENCH LABOUR BODY SLAPS €175,000 FINE FOR VIOLATION IN WORK-TIME RECORDING SYSTEM

• INFOSYS - FINE TO HAVE NO MATERIAL IMPACT ON FINANCIALS, OPERATIONS

Further company coverage: INFY.NS

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Updates for markets open

July 24 (Reuters) - Indian shares opened lower on Friday, pressured by the rise in Brent crude to above $100 per barrel as the Middle East crisis escalates, while a slide in IT company Infosys and airline operator IndiGo on weaker-than-expected earnings further hurt sentiment.

The benchmark Nifty 50 .NSEI fell 0.85% to 23,666.35, while the BSE Sensex .BSESN shed 0.89% to 75,708.19 by 9:15 a.m. IST, both on course for fifth straight session of losses.

U.S. President Donald Trump promised a "major military punishment" for Iran and its Houthi allies on Thursday after the Yemeni fighters struck two Saudi oil tankers in the Red Sea, extending the Middle East war to a second major shipping chokepoint.

Higher oil prices pose a key risk for India, the world's third-largest crude importer and consumer, by stoking inflation, widening the trade gap, and squeezing growth and corporate margins.

All 16 major sectors logged losses. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 fell 0.6% each.

Infosys INFY.NS lost about 2% and Interglobe Aviation INGL.NS fell about 1.5% after subdued June quarter results.

(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)

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Infosys Ltd on Wednesday appointed Ashiss Kumar Dash as its next chief executive, succeeding Salil Parekh who will step down on March 31, 2027 after nine years at the helm. Dash, a three-decade veteran of the company and currently global head of a business portfolio spanning twelve industry verticals, will serve as CEO designate until March 31, 2027, before taking over as managing director and CEO for a five-year term from April 1, 2027, subject to shareholder approval. The board also approved the company's first-quarter financial results, reporting a 2.4% year-on-year constant-currency revenue growth and an operating margin of 21.1%, while revising its full-year revenue growth guidance to 1.5–3.0% from 1.5–3.5% earlier. Large deal wins in the quarter came in at $3.6 billion with 61% net new business, and AI-related services rose to 8.2% of revenue.

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Infosys appointed Ashiss Kumar Dash as Chief Executive Officer Designate, effective July 23, 2026, with the intention to elevate him to Managing Director and CEO on April 1, 2027. Dash, currently global head of a multi-industry portfolio, has spent over thirty years at the company in senior roles spanning delivery, operations, and customer business. The appointment follows a recommendation from the Nomination and Remuneration Committee and will be for a five-year term, subject to shareholder approval. Dash will succeed Salil Parekh, who has led Infosys since 2018 and is credited with steering the company through a digital transformation and doubling revenue to over $20 billion.

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Infosys on Wednesday appointed Ashiss Kumar Dash as chief executive officer designate, lining up a three-decade company veteran to succeed Salil Parekh when his second term ends in March 2027. The board intends to name Dash as managing director and CEO from April 1, 2027, subject to shareholder approval. Dash currently heads a portfolio spanning multiple industry verticals and the sustainability practice. He joined Infosys more than 30 years ago and has held senior roles in client-facing business, delivery, and global operations. The Bengaluru-based company also reported a 14% year-on-year rise in June-quarter consolidated net profit to ₹7,769 crore on revenue of ₹48,211 crore. Constant-currency revenue grew 2.4%, and the management revised its full-year revenue growth forecast to 1.5–3.0%.

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BENGALURU, July 23 (Reuters) - Infosys INFY.NS reported lower-than-expected quarterly revenue on Thursday as India's second-largest IT firm's clients held back spending as artificial intelligence tools disrupt traditional software businesses.

It also appointed a CEO designate for the company.

($1 = 96.5725 Indian rupees)

(Reporting by Sai Ishwarbharath B; Editing by Nivedita Bhattacharjee)

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July 13 (Reuters) - Infosys Ltd INFY.NS:

• MICHAEL NELSON GIBBS RETIRES AS INDEPENDENT DIRECTOR EFFECTIVE JULY 12, 2026

Source text: ID:nBSEbQ5GQZ

Further company coverage: INFY.NS

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Updates with closing levels

By Mridula Kumar

July 10 (Reuters) - India's Tata Consultancy Services TCS.NS rose as much as 4.1% on Friday after better-than-expected quarterly revenue on strong banking demand and rising AI revenue, though analysts said the broader sector recovery was likely to remain gradual.

Shares of the country's top software services exporter trimmed some gains to close about 1% higher at 2,069 rupees, helping lift the benchmark Nifty 50 .NSEI 1.02% higher.

The IT index .NIFTYIT gained about 1.96% during the session.

Analysts said investors were looking at positive growth expectations for TCS in the coming quarters, led by AI revenue, with multiple brokerages also citing strong growth in banking, financial services and insurance, high-tech and regional markets.

"The company expects AI adoption growth and transformation to pick up, and they expect better numbers," said Piyush Pandey, lead IT Analyst at Centrum Broking.

Annualized AI revenue crossed $2.6 billion, driven by faster deployments across industries, rising from $2.3 billion in the previous quarter, TCS said.

Quarterly sales rose 14% to 722.75 billion rupees ($7.58 billion), while CEO K Krithivasan signalled a second-quarter recovery in manufacturing and life sciences demand.

SUBDUED QUARTER, GRADUAL RECOVERY

While the results offered investors early signs that growth may be stabilizing in India's $315 billion IT sector, analysts said a broader recovery was likely to remain gradual as demand concerns remained after expectations of another subdued quarter.

Flattish international revenue and a 3% year-on-year fall in headcount suggested continued sluggishness, according to Citi, while Nomura analysts said macro uncertainty still weighed on the near-term outlook.

Brokerages had flagged a low growth rate for the company in fiscal 2027 due to AI-led deflation.

The earliest the net AI impact will turn accretive for the sector and company is mid- to end-fiscal 2028, HSBC said post the results, adding that TCS' quarterly earnings offered limited grounds for pessimistic investors to reassess their stance.

Rivals Infosys INFY.NS, HCLTech HCLT.NS and Wipro WIPR.NS are expected to report their quarterly earnings later in the month.

($1 = 95.3150 Indian rupees)

(Reporting by Mridula Kumar in Bengaluru; Writing by Abinaya V; Editing by Mrigank Dhaniwala and Janane Venkatraman)

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Updates with Microsoft layoff announcement on July 6

July 6 (Reuters) - Microsoft MSFT.O said on Monday it is cutting about 2.1% of its workforce, or roughly 4,800 jobs, as the Windows maker restructures parts of its commercial and Xbox businesses, joining other tech giants in a wave of layoffs as companies shift investment toward AI infrastructure.

The cuts highlight deepening concern among investors and economists that AI adoption will upend established industries, with job losses already emerging in sectors most exposed to automation.

In a memo to employees, Chief People Officer Amy Coleman said AI was changing how work gets done by automating some routine tasks, but that the layoffs were part of a broader effort to realign resources and operating structures with the company's priorities.

Below is a table of AI-linked global layoffs announced since October 2025, from biggest to smallest. Entries with no specified number are placed at the bottom.

(Reporting by Romolo Tosiani, Enrico Sciacovelli and Philippe Leroy Beaulieu in Gdansk, Additional reporting by Anshuman Tripathy; Editing by Matt Scuffham, Milla Nissi-Prussak, Jonathan Ananda, Devika Syamnath and Shilpi Majumdar)

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, July 3 (Reuters Breakingviews) - Markets aren't trusting IT outsourcers to get anything right. Shares in India's $7.5 billion Persistent Systems PERS.NS plunged after CEO Sandeep Kalra agreed to pay a 140% premium for its buyout of Germany's Nagarro NA9n.DE. But the $1.45 bln deal helps the buyer meet long-standing strategic goals at knockdown valuation.

After dropping 11% after the acquisition was announced on Saturday, Persistent's stock pared losses but remains 5% below its undisturbed price. The visceral negative reaction channels widespread industry uncertainty about whether acquisitions are a good answer to the AI revenue deflation threat facing the industry since Anthropic and peers launched coding tools.

Indian IT companies are loaded with cash but rarely strike deals, and very few transactions are regarded as successful. Even without a premium, Persistent's returns from its purchase are unlikely to cover the Indian software industry's 10% cost of capital per data from the NYU Stern School of Business, according to Breakingviews calculations.

Yet the acquisition is transformative. It will boost Persistent's presence in Europe, more than doubling the continent's share in its top line to 22%, and give it an entry into the Middle East, Turkey and Japan. As well as reducing its reliance on North America where the Trump administration is making it harder to secure visas for skilled workers that the IT industry needs, the deal will also add capabilities in serving industrial and consumer enterprises as well as governments, where Persistent has limited presence.

The sudden global investor aversion to software stocks handed Persistent an opening to meet these strategic goals at relatively attractive valuations. Nagarro's stock has fallen 46% since the beginning of 2026, twice as much as Persistent over the same period. It is paying 19 times Visible Alpha's estimates of the target's 2026 earnings, less than its own 29 times.

Given investors are anyway in the mood to punish IT companies and pushing back against attempts by others like $44 billion Infosys INFY.NS to boost buybacks, the downside of making a bold acquisition is limited.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Persistent Systems on June 27 said it would launch an offer for all outstanding shares in Munich-headquartered Nagarro Group, valuing it at $1.45 billion including debt. The offer of 81 euros ($92.12) per share represents a 140% premium to the last traded price before the deal was announced.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Adds BAT

June 29 (Reuters) - Concerns are deepening among investors and economists that AI adoption will upend established industries, with job losses already emerging in sectors most exposed to automation.

Goldman Sachs economists said in February that AI was responsible for 5,000 to 10,000 monthly net job losses last year in the most exposed U.S. industries.

A survey by global outplacement firm Challenger, Gray & Christmas linked AI to 7% of total U.S. planned layoffs announced in January.

Below is a table of AI-linked global layoffs announced since October 2025 from biggest to smallest. Entries with no specified number are placed at the bottom.

(Reporting by Romolo Tosiani and Philippe Leroy Beaulieu in Gdansk, Additional reporting by Anshuman Tripathy; Editing by Matt Scuffham, Milla Nissi-Prussak, Jonathan Ananda, Devika Syamnath and Shilpi Majumdar)

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** IT services firm Infosys' U.S.-listed shares INFY.N rise 2.1% to $10.8

** Wells Fargo initiates coverage with "equal weight" rating; sets PT at $11, implying a 4.1% upside to the stock's last close

** Brokerage says INFY is "not immune from AI transition" and awaits further proof that the company is a net beneficiary of the technology

** Notes "overall demand backdrop remains complex given geopolitical uncertainty" and while INFY's large deal bookings trends are healthy, "smaller more discretionary projects remain muted"

** Avg. rating of 14 analysts is "hold;" their median PT is $14.50, according to LSEG data

** Stock has fallen 39.4% so far this year

(Reporting by Anzar Mehraj in Bengaluru)

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June 24 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS COLLABORATES WITH SENTARA TO UNLOCK AI VALUE AND SCALE ENTERPRISE AI ADOPTION IN HEALTHCARE SERVICES

Source text: ID:nCNWBlGzha

Further company coverage: INFY.NS

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June 23 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS - ENTERS MULTI-YEAR COLLABORATION WITH GLOBALFOUNDRIES FOR AI-LED MANAGED SERVICES

• INFOSYS - ANNOUNCES EXPANDED COLLABORATION WITH GLOBALFOUNDRIES FOR AI-DRIVEN IT TRANSFORMATION

Source text: ID:nNSE9KPnB2

Further company coverage: INFY.NS

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Recasts story with analyst commentary, details and background

BENGALURU, June 19 (Reuters) - India's Nifty IT index .NIFTYIT fell to a three-year low on Friday after bellwether Accenture ACN.N forecast quarterly ​sales below Wall Street view, cut its annual revenue outlook and reported softer bookings in its managed services business.

Shares of Indian IT companies, including TCS TCS.NS, Infosys INFY.NS, and HCLTech HCLT.NS fell 4% to 8% after Accenture flagged deal delays and a $400 million hit to its Middle East business from the Iran conflict.

India's $315 billion IT sector faces concerns that AI could disrupt its labour-intensive model, while geopolitical and economic ​uncertainty weighs on demand as ​clients defer non-essential tech spending.

Analysts see a negative read-through for Indian IT, with Morgan Stanley saying investors had already priced in a weak start to fiscal 2027 but expect an improvement in the September quarter.

"However, with this commentary from Accenture, we think hopes of any meaningful improvement in growth in 2Q could start fading away," the note said.

Indian IT firms have limited direct exposure to the Middle East, said Pritesh Thakkar, equity analyst at PL Capital, but face indirect risks from delay in deal closures, slower project ramp-ups and prolonged decision cycles.

Accenture's forecast follows hawkish U.S. Federal Reserve commentary that has fuelled expectations of a September rate hike. Higher rates could dampen appetite for emerging markets and weigh on overseas spending, a risk for Indian IT firms with significant U.S. exposure.

Mayuresh Joshi, head of equity research at investment advisory firm William O'Neil & Co, told Reuters that the market is looking for growth, which is "clearly missing", even though existing order books support current revenues.

"In terms of what these hyperscalers and platform companies are doing and implementing across enterprise value chains, they'll (Indian IT companies) have to get their act together very fast, both in terms of organic and inorganic."

India's IT stocks have slid about 29% so far this year, making them the worst-performing sector, versus an 8.3% drop in the benchmark Nifty 50 .NSEI.

(Reporting by Haripriya Suresh in Bengaluru; Editing by Sherry Jacob-Phillips)

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