Infosys Ltd. has expanded its strategic collaboration with Amazon Web Services (AWS), integrating its Topaz suite with Amazon’s Q Developer to accelerate generative AI adoption for enterprise clients. The move marks the latest salvo in an escalating AI arms race among India’s $250 billion IT services sector as it seeks to counter slowing legacy growth with high-margin AI contracts.
Infosys CEO Salil Parekh. (Reuters)
Under the agreement, Infosys will combine its Topaz “AI-first” services with AWS’s generative AI assistant to automate complex workflows in software development, human resources, and vendor management. The Bengaluru-based company aims to move beyond simple code generation, using the partnership to deliver “agentic” capabilities—systems that can independently execute multi-step tasks—for clients in manufacturing, telecom, and financial services.
“This is about amplifying human potential to drive innovation and deliver impact at an unprecedented scale,” said Balakrishna D.R., Infosys’s head of AI and Industry Verticals.
The ‘Agentic’ AI Pivot
The Infosys-AWS pact highlights a broader industry shift in 2026: the transition from experimental AI “pilots” to full-scale “agentic” deployments. Indian IT majors are aggressively maneuvering to capture this spending.
Tata Consultancy Services Ltd. (TCS), the sector’s bellwether, recently launched a dedicated “Agentic AI” suite, partnering with hyperscalers including Google and AWS to deploy autonomous agents for functions like IT and sales. In December 2025, TCS deepened its AI moat by partnering with Workday to integrate AI into human capital management.
Wipro Ltd. has taken a research-led approach, signing a pact with the Indian Institute of Science (IISc) in late 2025 to co-develop agentic and quantum AI technologies. Meanwhile, mid-cap challenger Coforge Ltd. made a definitive play for scale in December, acquiring AI-native engineering firm Encora for $2.35 billion to bolster its data and cloud capabilities.
From Hype to Revenue
Investors are increasingly demanding evidence that these investments are translating into top-line growth. HCLTech Ltd. recently became the first top-tier Indian IT firm to break out standalone AI revenue, reporting over $100 million in AI-specific income for the September 2025 quarter—a disclosure that has increased pressure on peers to show similar transparency.
For Infosys, the AWS integration is a play to defend its margins and deepen client stickiness. By embedding Amazon Q into the software development lifecycle, Infosys claims it can significantly reduce time spent on debugging and legacy code modernization—critical value propositions as clients tighten discretionary spending.
“The combined strengths of Amazon Q and Infosys Topaz will help organizations innovate… and unlock differentiated value,” said Sandeep Dutta, President of AWS India and South Asia.