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Homegrown technology firm Zoho Corporation has paused its annual pay hikes and pruned its marketing expenditure, citing sharply escalating Artificial Intelligence (AI) infrastructure costs and an uncertain outlook for the software sector, founder Sridhar Vembu said on Tuesday. In a post on social media platform X, Vembu described the global employment landscape for the software sector as "grim" and said that the company has kept its headcount flat for the past 18 months while making efforts to avoid mass layoffs. "The business outlook for software is uncertain, and AI has raised costs dramatically with a) A massive 4-fold increase in server prices which we need for data centres and b) AI usage increasing rapidly, leading to much higher expenses, which we are trying to control," Vembu said. He added that a "challenging geopolitical backdrop" has further compounded these operational pressures. Outlining the internal measures taken to navigate the headwinds, Vembu stated that the comp
As much as 80 per cent of TCS' new hires will be talent with digital and Artificial Intelligence (AI) skills going forward, a top company official has said. With the share of AI-led work in overall revenue growing to 10 per cent in the recently concluded September quarter, the country's largest IT services company said a growth in the share of AI revenues will help it expand its profit margins, which remain below its aspirational levels. "Of the 4,500 that we have added in Q2, I would say safely 25 to 30 per cent are pure AI and total about 80 per cent is new age," the company's chief operating officer Arathi Subramanian told PTI here. When asked if the same proportion will continue going ahead as well, she replied in the affirmative and added that the desired talent is available in the market. When asked if it is advantage for freshers over the mid-career professionals in this sort environment, where their AI-nativity and relatively lower costs would be of help to the former, she