According to a prominent Infosys (INFY.NS) executive, IT clients are enthusiastic about utilizing artificial intelligence, but financial constraints are making them slow down the technology’s rapid adoption.
“You have to consider return on investment, as this technology is more expensive than others,” Reuters was informed by Satish HC, executive vice-president and co-head of delivery at India’s second-largest software services exporter.
Recently, clients have been more interested in cost-takeout initiatives. According to Satish, “absolutely essential” requirements, such strengthening their defenses against cyberattacks, are eating up funds and could postpone the roll-out of AI.
“Some of those priorities are reducing the pace at which organizations go,” Satish said.
In the face of inflationary pressures and uncertainty about the global economy, clients are likely to reduce spending and postpone making decisions, resulting in a modest 3.8% growth to $253.9 billion for the Indian information technology sector in the year ending in March 2024.
According to him, some businesses may not be prepared for AI scale-up because they are not data-ready, but others are embracing the technology quickly because of the greater opportunities it offers.
But Infosys is confident in its wager on the cutting edge technology.
“I don’t think Infosys was a digital-first company… We are adjusting to AI lot better now that we have the benefit of hindsight from how we adapted to digital, though it took us a few years “I think we are going AI first,” he remarked.
He went on to say that while 2023 was a “sliding slope,” 2024 might be the year that builds the groundwork for the future.
According to industry association Nasscom and consulting firm BCG, the AI market in India is expected to reach $17 billion by 2027, rising at an annualized pace of 25–35% between 2024 and 2027.
“I believe there are several foundations you may lay for acceleration. This is the reason he referred to it as a “bridge year,” adding that he still does not anticipate clients overspending.
“I don’t see that significantly changing because half the world is going through elections this year,” Satish stated.
