Vishal Sikka, who ran Infosys as CEO until 2017, has launched a new startup called Hang Ten Systems with a $32 million seed round led by Mayfield, with strategic investment from Aramco Ventures and a roster of angels, according to TechCrunch. No valuation was disclosed.
Hang Ten uses AI-driven development and automation -- agentic code generation paired with reusable 'AI skills' -- to help enterprises build, modify and operate software. The explicit target is the traditional IT-services model: the customization, integration and maintenance work that firms like Accenture, TCS, Infosys and Wipro sell by the billable hour. The thesis, as Mayfield framed it, is that 'traditional services scale linearly with headcount,' whereas Hang Ten's model means 'leverage grows with every project.'
“Hang Ten uses AI-driven development and automation -- agentic code generation paired with reusable 'AI skills' -- to help enterprises build, modify and operate software.”
The founder is the story. Sikka is one of the few people who has run a global IT-services giant from the inside and also led deep technical work (he was previously SAP's CTO), giving him unusual credibility to argue that AI can replace rather than complement outsourced engineering labor. That insider knowledge of where the bodies and margins are buried is precisely what makes the bet threatening to incumbents.
The context is an industry under direct pressure from AI. The IT-services sector is built on arbitraging large workforces, and agentic coding tools -- from GitHub Copilot to Cursor to Cognition's Devin -- are already compressing the headcount needed per project. Hang Ten is a more frontal attack: not a tool sold into the existing model, but a replacement for it. Early traction is notable, with Siemens Gamesa Renewable Energy and Fresenius already engaged just a month after launch.
The bear case: services businesses are sticky for reasons beyond labor cost -- relationships, accountability, regulatory cover -- and 'AI replaces consultants' has been promised before. Displacing entrenched vendors inside risk-averse enterprises is a long, relationship-driven slog. What to watch: whether Hang Ten converts pilots into multi-year enterprise contracts, how the legacy services giants respond, and whether the 'leverage per project' economics hold as projects scale in complexity.