Former Infosys CEO Launches Hang Ten Systems to Revolutionize IT Services with AI
For decades, IT services firms have generated billions of dollars by allowing companies to outsource critical tech tasks such as customizing, integrating, and maintaining enterprise software. Now, Vishal Sikka, the former CEO of Infosys—one of the largest IT services companies in India—is betting that artificial intelligence can perform much of that work more efficiently and cost-effectively.
Sikka's new venture, Hang Ten Systems, officially emerged from stealth on Wednesday with $32 million in seed funding. The round was led by Mayfield, with strategic investment from Aramco Ventures and participation from several angel investors. The startup has already secured notable enterprise customers, including Siemens Gamesa Renewable Energy and Fresenius, and is working on AI-native project delivery. According to a blog post by Sikka, Hang Ten is helping large enterprises “hang ten on the biggest wave of our lifetimes.”
The Vision Behind Hang Ten Systems
Hang Ten Systems describes itself as an enterprise AI services company built around agentic code generation, reusable AI skills, and deep domain expertise. The company aims to help enterprises continuously build, modify, and operate software using AI-driven development and automation. Unlike traditional IT services firms that rely on large teams of developers and manual processes, Hang Ten leverages AI to automate much of the software lifecycle.
The startup's board includes Jerry Yang, co-founder of Yahoo, which underscores the confidence prominent tech figures have in Sikka's vision. The early crew comprises executives who have worked with Sikka for years across SAP, Infosys, and his previous enterprise AI startup, VianAI. Among them are co-founders Navin Budhiraja (CTO), Sanjay Rajagopalan (chief design officer), and Tao Liu (senior vice president of forward deployed engineering).
Vishal Sikka: A Career Defined by Innovation
Vishal Sikka is no stranger to the enterprise software and IT services landscape. He spent 12 years at SAP, where he held top technical and leadership roles, and later served on the board of Oracle. In 2014, he became the first non-founder CEO of Infosys, leading the company through a period of digital transformation. After stepping down as Infosys' chief executive in 2017 amid strategic disagreements with the board, Sikka founded VianAI, an enterprise AI startup that emerged from stealth in 2019 with $50 million in seed funding. VianAI later raised $140 million in a 2021 round led by SoftBank Vision Fund 2.
While VianAI focused on enterprise AI applications and analytics tools designed to help businesses use artificial intelligence in decision-making, Hang Ten Systems is distinctly different. According to Mayfield managing partner Navin Chaddha, Hang Ten targets a different market. It is an AI services company, not just an AI tools provider. The startup’s model is built around agentic code generation—where AI agents write, test, and deploy code autonomously—combined with reusable AI skills and human domain expertise.
The AI Disruption Debate in IT Services
Hang Ten enters a market where IT services firms are racing to adapt to AI through partnerships with companies like Anthropic and OpenAI. The launch comes amid a growing debate over whether AI will expand the industry’s addressable market or fundamentally alter how enterprise software is built, maintained, and delivered. Analysts at Jefferies argued earlier this year that IT services may be among the first sectors to face meaningful AI disruption. Infosys chairman Nandan Nilekani, however, has expressed optimism, suggesting that AI could expand the industry’s addressable market rather than shrink it.
Infosys itself has sought to position AI as an opportunity. In a recent investor communication, the company stated that “AI-first services” could represent a $300 billion to $400 billion market by 2030. Despite this optimistic outlook, Infosys shares have declined more than 35% this year as investors reassess the outlook for traditional IT services firms in the age of AI. Hang Ten’s emergence adds a new competitive dynamic to the space, directly challenging the very model that made Infosys and its peers successful.
How Hang Ten Scales Differently
Mayfield, which led the seed round, believes Hang Ten’s AI-native model can scale in ways that traditional services firms cannot. “Traditional services scale linearly with headcount,” Mayfield said in a statement. “Hang Ten is built so its leverage grows with every project.” This means that as Hang Ten completes more projects, its AI systems become more capable, reducing the need for additional human resources. The startup’s platform learns from each engagement, accumulating reusable AI skills that can be applied to future projects.
Navin Chaddha, managing partner at Mayfield, told TechCrunch that Hang Ten “just got started a month back” and already has paying customers. This rapid traction underscores the demand for AI-driven services that promise speed, efficiency, and cost savings. The startup is headquartered in the Bay Area and is actively hiring across delivery, engineering, sales, and leadership roles. It plans to expand to multiple locations globally to meet enterprise demand.
Impact on the IT Services Industry
Hang Ten’s business model could have profound implications for the IT services industry. Traditional firms like Infosys, Tata Consultancy Services, Wipro, and HCL Technologies have long relied on large teams of engineers to customize and maintain enterprise software. These companies have enjoyed high margins by arbitraging labor costs and scaling headcount. AI-native services, however, could decouple revenue from headcount, allowing companies like Hang Ten to deliver more value with fewer people.
If successful, Hang Ten could force legacy IT services firms to accelerate their own AI adoption or risk losing market share. The startup's focus on AI-driven development and automation addresses a key pain point for enterprises: the high cost and slow pace of software customization and integration. By automating repetitive tasks, Hang Ten can deliver projects faster and at lower cost, with higher quality and consistency.
Early Customer Traction
Hang Ten has already secured two prominent customers: Siemens Gamesa Renewable Energy, a global leader in wind energy, and Fresenius, a healthcare company. Both are using Hang Ten’s platform for AI-native project delivery. These early adopters are leveraging the startup’s agentic code generation and domain expertise to build and modify software at unprecedented speed. Sikka’s long track record in enterprise software likely played a role in winning these customers, along with the credibility of having led Infosys.
The startup is targeting large enterprises that have complex, legacy systems requiring ongoing customization and integration. These enterprises are often frustrated by the slow pace and high costs of traditional IT services, making them ideal candidates for AI-driven alternatives. Hang Ten positions itself as a partner that can help enterprises modernize their software estates while reducing total cost of ownership.
The Road Ahead
Hang Ten Systems is entering a market that is both ripe for disruption and fiercely competitive. Established IT services firms are not standing still; many are investing heavily in AI and automation. Infosys, for example, has partnered with Anthropic and OpenAI to develop AI-powered solutions. However, these incumbents face the innovator’s dilemma: their existing business models rely on labor-intensive work, making it difficult to fully embrace a model that displaces their own revenue streams.
Hang Ten’s ability to scale quickly and build a library of reusable AI skills will be critical to its success. The startup must also navigate the talent war for AI engineers and domain experts. With $32 million in seed funding and backing from Mayfield, Aramco Ventures, and notable angels, Hang Ten has the resources to invest in technology and talent. Vishal Sikka’s experience and network in the enterprise software world give the startup a strong foundation.
As enterprises increasingly look to AI to drive digital transformation, the demand for AI-native services is likely to grow. Hang Ten Systems is positioned at the intersection of this trend, offering a model that could fundamentally change how enterprise software is built and maintained. Whether it can challenge the IT services giants remains to be seen, but the early signs are promising. The startup already has customers, a world-class team, and a board that includes a tech legend. If Hang Ten can deliver on its promise, it may well spark a new era in IT services—one where AI is not just a tool, but the core of the service itself.
Source:TechCrunch News