Time-and-materials outsourcing model losing relevance in AI era: 8090 CEO Chamath Palihapitiya
8090 Co-founder and CEO Chamath Palihapitiya stated that the traditional time-and-materials outsourcing model is losing relevance as companies increasingly allocate budgets to controllable artificial intelligence solutions. He highlighted Infosys' recent revenue forecast cut as evidence of this shift, indicating a move away from outsourced engineering hours. Palihapitiya noted that large regulated enterprises are adopting AI-led software development to modernize legacy systems, leveraging 8090's Software Factory to reduce costs associated with outdated code.