India’s IT services firms face mounting pressure from a mix of slowing client spending and rapid advances in generative AI. Shares of Infosys have fallen over 22% this year amid a broader sell-off triggered by weak forecasts, investor concerns that AI tools could automate parts of traditional outsourcing work, and macroeconomic turmoil due to the U.S.-Iran war.

The move also reflects a broader trend of AI firms teaming up with global IT services providers to scale adoption in large enterprises. OpenAI has previously partnered with HCLTech, and Infosys has struck a similar deal with Anthropic.

OpenAI gains a distribution channel into large enterprises through Infosys’ global client base and delivery capabilities across more than 60 countries. The companies said the deal is aimed at helping enterprises move from experimentation to large-scale deployment.

Infosys has been ramping up its AI business. The company said earlier this year that AI-related services generated ₹25 billion (about $267 million) in revenue in the December quarter, or roughly 5.5% of its total.