Infosys is recalibrating its business strategy as global capability centres, also known as GCCs, increasingly shift outsourced work in-house, prompting the IT services major to focus on artificial intelligence, platforms, and higher-value services to sustain growth.
The move comes amid a broader industry shift where multinational corporations are expanding their captive centres in India and other markets. These centres are taking on a larger share of technology and operations work that was traditionally outsourced to IT services firms. As a result, companies like Infosys are adapting their offerings to remain relevant in a changing demand environment.
Infosys has been positioning its artificial intelligence platform, Topaz, as a key pillar of its future growth strategy. The platform integrates generative AI capabilities with enterprise solutions to help clients drive efficiency, automate processes, and enhance decision-making. The company has indicated that AI-led transformation deals are gaining traction, even as traditional outsourcing contracts face pressure.
Executives at Infosys have acknowledged that GCCs are evolving from cost centres into strategic hubs for innovation and digital transformation. This shift is leading to a rebalancing of work between captive centres and external service providers. In response, Infosys is focusing on areas where it can add differentiated value, including consulting, system integration, and AI-driven solutions.
The company is also working more closely with GCCs rather than viewing them solely as competitors. In several cases, Infosys is partnering with these centres to provide specialised expertise, scale, and technology capabilities. This collaborative approach reflects a broader trend in the industry, where service providers and captive units are increasingly coexisting within the same ecosystem.
Infosys has been investing in building capabilities that align with emerging client needs, particularly in areas such as cloud, data analytics, and cybersecurity. These investments are aimed at capturing opportunities beyond traditional application development and maintenance services, which have seen slower growth in recent quarters.
The rise of GCCs has been particularly prominent in India, where global companies are expanding their footprint to leverage talent and cost advantages. These centres are now involved in core business functions, including product development, engineering, and digital innovation. This evolution is reshaping the competitive landscape for IT services firms.
Infosys is also focusing on large, integrated deals that combine multiple services and technologies. Such deals often involve long-term partnerships and require a higher degree of domain expertise and execution capability. The company has indicated that its pipeline for large deals remains strong, supported by demand for digital transformation initiatives.
At the same time, the company is navigating macroeconomic uncertainties that have led to cautious spending by clients in certain sectors. While demand for AI and digital services remains robust, discretionary spending on technology projects has been impacted in some markets. This has added to the pressure on traditional outsourcing revenues.
Industry observers note that the shift towards in-house capabilities is not expected to completely replace outsourcing but will change the nature of engagements. Service providers are likely to play a more strategic role, focusing on innovation, complex problem-solving, and outcomes rather than routine execution.
Infosys’ emphasis on AI and platforms reflects this transition. By embedding AI into its service offerings, the company aims to improve productivity and deliver measurable business outcomes for clients. The approach is also expected to help Infosys differentiate itself in a competitive market.
As GCCs continue to expand and mature, IT services firms are expected to further evolve their business models. Infosys’ strategy highlights the importance of agility and innovation in navigating these changes, with a focus on aligning capabilities with the shifting priorities of global enterprises.