Infosys CEO Salil Parekh Confirms No Layoffs as Company Eyes Major Acquisitions in AI & SaaS

Infosys Ltd. is planning to expand its business by acquiring more companies, particularly those in the data analytics and software-as-a-service (SaaS) sectors. This move is driven by the growing demand for generative artificial intelligence (AI) among its clients. The company’s CEO, Salil Parekh, shared these insights in a recent report by PTI.

No Layoffs Due to AI, Says Infosys CEO

Despite the increasing focus on AI, Parekh assured that there won’t be any layoffs at Infosys as a result of this new technology. He also hinted at the possibility of exploring acquisition opportunities in Europe or the United States to further strengthen the company’s capabilities.

Potential Large-Scale Acquisitions

When asked about the potential for large-scale acquisitions similar to a previous deal worth 450 million euros, Parekh confirmed that Infosys is indeed considering deals of that size and might pursue several such acquisitions in the near future.

Recent Acquisitions

Earlier this year, Infosys made strategic moves by acquiring 100% of InSemi Technology Services, an Indian chip-designing company, for around ₹280 crore in January 2024. In April 2024, the company acquired in-Tech Holding, a German firm specializing in engineering R&D services, for about 450 million euros. These acquisitions have bolstered Infosys’s presence in the semiconductor and automotive sectors.

Future Plans

Parekh expressed confidence in expanding Infosys’s footprint further, not just in engineering services but also in data analytics and SaaS. The company is considering opportunities in other geographies, particularly in Europe and the US, as it evaluates potential firms for acquisition.

Focus on Strategic Synergies and Integration

When discussing ongoing acquisition talks, Parekh noted that it’s challenging to predict when these deals will close. He emphasized the importance of factors like strategic synergies, financial considerations, cultural fit, and integration in making acquisition decisions.

Growing Adoption of Generative AI

Parekh highlighted the increasing adoption of Generative AI (GenAI) by companies, which is expected to grow as businesses experience more benefits from this technology. Infosys has already launched 225 GenAI client programs and is in the process of training over 2.5 lakh employees in generative AI.

Optimistic Outlook for AI and Strategic Growth

Overall, Infosys is optimistic about the future of AI and is actively looking to grow its business through strategic acquisitions in key areas. The company’s focus on expanding its capabilities in data analytics, SaaS, and engineering services reflects its commitment to staying at the forefront of technological innovation.