Infosys CEO Salil Parekh on the Company's Approach to Mergers and Acquisitions

Infosys CEO Salil Parekh Emphasizes Deal Discipline Amid Intensifying Competition

Infosys, a leading Indian IT major, is maintaining its aggressive approach to chasing large deals, but is becoming increasingly discerning in its pursuit of such contracts, according to Chief Executive Officer Salil Parekh. The company is tightening its scrutiny on deals where the economic profile does not align with its goals, reflecting a sharpened focus on profitability over volume.

Parekh's comments come at a time when the global IT services market is facing intense competition, driven by pricing pressure, client budget tightening, and rising competition from both peers and insourcing through global capability centres (GCCs). In a similar vein, HCLTech recently opted to walk away from over $1 billion in potential new deal bookings during the fiscal year 2026 (ended March 2026) to prioritize higher-profitability contracts.

Read also: Expert Portfolio Manager Raja Venkatraman Names Top Investment Picks for June 4

Despite this, Infosys is also making strides in its GCC-related business, with the company hosting over 500 GCC leaders on its campus to showcase the potential of AI-led GCCs in driving innovation. Parekh noted that the company is seeing strong traction in this area, alongside a healthy pipeline and large deal momentum, which together are expected to support growth going forward.

The company's large deal wins stood at $14.9 billion for the year, representing a 20 percent increase from the previous year, with 96 deals signed. Approximately 55 percent of this total was net new work, providing a pipeline for future growth.

However, the broader industry is experiencing a lag in revenue conversion, as automation and AI-led efficiencies compress the value of traditional services. Infosys is navigating this shift with a focus on high-quality growth, with Parekh pointing to the company's constant currency growth and a narrower guidance band of 1.5 percent to 3.5 percent for the current fiscal.

To offset pressure from traditional revenue streams, Infosys is leaning on large deals and AI-led services. Parekh emphasized that the company's growth is strong relative to the industry, and that it is committed to maintaining a disciplined approach to deal-making in the face of increasing competition.

Read also: MarketSmith India's 4 June Stock Recommendations