Former Infosys chief has a new startup that wants to challenge the IT services world

Vishal Sikka, the former CEO of Infosys, is embarking on a bold new journey with his startup, Hang Ten Systems, which is poised to disrupt the traditional IT services landscape. With decades of experience in enterprise software, Sikka is pivoting towards artificial intelligence, believing it can effectively handle tasks such as software customization, integration, and maintenance. The startup has successfully secured $32 million in seed funding, led by Mayfield, with additional support from Aramco Ventures and various angel investors. Hang Ten’s mission is to assist enterprises in the continuous development and operation of software through AI-driven automation. This launch comes at a time when established IT service providers, including Infosys, are racing to integrate AI capabilities into their offerings through partnerships with tech giants like Anthropic and OpenAI. Sikka, who has a storied career that includes 12 years at SAP and a role on Oracle's board, is attracting interest from large enterprises eager to explore AI solutions. Notable customers already on board include Siemens Gamesa Renewable Energy and Fresenius, signaling early success for the fledgling company. Mayfield Managing Partner Navin Chaddha highlighted that Hang Ten has only been operational for a month yet already has secured clients. In a recent blog post, Sikka expressed enthusiasm for the venture, stating that Hang Ten is helping enterprises navigate what he describes as 'the biggest wave of our lifetimes.' Based in the Bay Area, the startup is actively hiring across various departments, including engineering and leadership, in anticipation of growing demand for its services globally. The founding team of Hang Ten includes several former colleagues of Sikka from his time at SAP and Infosys, such as CTO Navin Budhiraja and Chief Design Officer Sanjay Rajagopalan. After leaving Infosys in 2017, Sikka launched VianAI, which focused on enterprise AI applications but has since transitioned to this new venture. While VianAI emphasized analytics tools, Hang Ten aims to redefine IT services through innovative AI capabilities that enhance project delivery. Investors are closely watching how AI will reshape the economics of the IT services industry. Some analysts predict that AI could significantly disrupt traditional business models, while others, including Infosys chairman Nandan Nilekani, suggest that AI might actually broaden market opportunities. Despite the uncertainty in the sector, Infosys has positioned AI as a potential growth driver, estimating that 'AI-first services' could tap into a market worth $300 billion to $400 billion by 2030. With Infosys shares down more than 35% this year, the conversation around AI's role in the future of IT services is more critical than ever.