Infosys Limited’s (INFY) shares edged higher on Tuesday after the Indian information technology giant announced a tie-up with San Francisco-based AI software delivery company Harness. Both companies plan to work together to help enterprises scale their AI adoption by “standardizing and automating” the end-to-end software delivery lifecycle.
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Infosys Aims to Help Enterprises Scale AI Adoption
To achieve this, the companies plan to apply AI across the entire process, from the coding to the production stage, while addressing major headaches such as testing, deployment, reliability, and cost optimization that consume the majority of the time of engineering teams.
Specifically, the partnership will rely on the combined capabilities of the Infosys Topaz Fabric agent AI services suite, Infosys Cobalt cloud offerings, and Harness’ software delivery platform. The integration is expected to help boost productivity, enhance software engineering, strengthen AI governance, and speed up the scaling of new tools for enterprise deployment.
“The collaboration brings context-aware intelligence and automation into software delivery,” Infosys noted in a statement.
The company added, “Together, Infosys and Harness will offer integrated solutions designed to support large-scale modernization and transformation programs, with a focus on complex, high-scale, and regulated environments.”
Will AI Force a Shift in Infosys’ Business Model?
The collaboration comes even as Jefferies has expressed worries about how the rise of AI may “structurally” change Infosys’ business.
Jefferies analyst Akshat Agarwal contended that AI may force Infosys to shift its IT services business more toward consulting and implementation.
Is Infosys a Good Buy for the Long Term?
Across Wall Street, analysts’ consensus rating on Infosys’s shares remains a Hold based on two Buys and six Holds issued over the past three months.
However, the average INFY price target of $17.66 implies about 26% upside from current trading levels. This is based on analysts’ 12-month price targets over the same three-month period.
