Dive Brief:
- Infosys launched a cloud and AI innovation hub as part of an expanded partnership with Google’s cloud division. The IT services firm opened a Google Cloud center of excellence with a dedicated AI lab Tuesday.
- The two companies are developing enterprise use cases leveraging the Infosys Topaz AI services platform and Google Cloud’s growing suite of LLM-powered solutions.
- “The collaboration will enable a conducive environment for enterprises to co-create customized solutions in areas such as contact center AI, software development lifecycle, agentic AI, speech-to-speech, text-to-image and application modernization,” Infosys said.
Dive Insight:
As models continue to proliferate and compete for enterprise attention, IT service providers are focused on bringing industry-specific use cases to an already crowded market.
PwC announced plans to work with AWS on AI tools for the financial services and pharmaceutical industries earlier this month. Accenture teamed up with Microsoft and Avanade to tailor Copilot AI solutions for finance, manufacturing, supply chain, consumer goods and healthcare in November.
The expanded alliance between Infosys and Google Cloud builds on a partnership forged last year to launch generative AI labs and upskill 20,000 cloud practitioners. Infosys has now trained 60,000 employees on Google Cloud, according to the Tuesday announcement.
Enterprises are navigating technical talent roadblocks and IT modernization hurdles as they seek returns on investments in AI technologies, according to an October Infosys survey of 1,500 executives.
“This readiness gap represents both a challenge and a massive opportunity,” Jeff Kavanaugh, VP and head of the Infosys Knowledge Institute, said in the report.
IT services will account for roughly 30% of the $5.7 trillion market for technology next year, according to Gartner. The segment is set to grow by nearly 10% year over year, the analyst firm said in October.
Infosys and other IT services firms want to provide a bridge to AI productivity gains and elusive ROI. They’re banking on the business opportunity.
IT services remain the largest segment of the global IT market, John-David Lovelock, distinguished VP analyst at Gartner, told CIO Dive. Spending on AI and related capabilities will drive major market growth, he said.
