Time-and-materials outsourcing model losing relevance in AI era: 8090 CEO Chamath Palihapitiya

New Delhi [India], July 30 (ANI): The traditional time-and-materials outsourcing model is becoming less relevant as enterprises increasingly shift technology spending towards artificial intelligence solutions they can directly control, according to 8090 Co-founder and CEO Chamath Palihapitiya.

In a post on X, Palihapitiya said the shift is reflected in Infosys’ recent decision to lower its revenue forecast, arguing that enterprises are moving budgets away from outsourced engineering hours and towards AI-driven software development.