The case examines how Infosys Ltd., a leading Indian IT services firm, is navigating the disruptive impact of artificial intelligence (AI) and the rise of Global Capability Centres (GCCs). Historically built on a people-intensive global delivery model, Infosys faces a structural shift as AI reduces reliance on large workforces while enhancing productivity. Under CEO Salil Parekh, the company has repositioned itself as an “AI-first” organization through platforms such as Infosys Topaz (AI) and Cobalt (cloud), supported by strategic partnerships, workforce reskilling, and innovation investments.

The case traces Infosys’s evolution from its founding in 1981 to its transformation attempts under Vishal Sikka and later stabilization under Parekh. It highlights industry-wide changes, including the shift toward platform-based, outcome-driven models and increasing competition from global players and Indian peers like TCS, Wipro, and HCLTech.

Despite progress, Infosys faces significant challenges: cultural and structural inertia, uncertainty in monetizing AI investments, pressure on revenue due to AI-driven efficiency gains, talent shortages in advanced AI skills, and competition from client-owned GCCs. The launch of an AI-first GCC model reflects an attempt to convert threats into opportunities. The case concludes with strategic dilemmas regarding balancing multiple business models and sustaining growth in an AI-driven future.