New Delhi, July 30 -- 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.

"Infosys cut its revenue forecast this week. The reason it gave is that enterprises are moving their budgets out of outsourced hours and into AI they can control," Palihapitiya said.

He said the outsourcing model has tr...