Infosys, a global leader in next-generation digital services and consulting, has announced a strategic collaboration with Cursor, a leading AI-powered development platform, to help enterprises worldwide accelerate their AI value journey. 

As part of this collaboration, the companies will set up a Centre of Excellence (CoE) to accelerate enterprise adoption of software engineering agents in the development of AI native products. 

The CoE will enable Infosys software engineers to leverage Cursor’s enterprise-grade, AI-assisted development capabilities across greenfield and brownfield opportunities. By integrating Cursor with Infosys Topaz Fabric^TM, a purpose-built agentic services suite – a multi-layer AI fabric that unifies infrastructure, models, data, applications, and workflows into a composable, agent-ready ecosystem, Infosys will help clients to build, modernize, and scale enterprise systems with increased velocity and higher quality.

Building on Infosys’ deep engineering excellence, the CoE will feature an AI Engineering Experience Zone where clients can firsthand experience Infosys Topaz Fabric engineering capabilities – bringing together the power of cloud, data, and AI to deliver cognitive solutions and intuitive experiences that drive business growth. 

The CoE will also serve as a hub for scaling Cursor’s AI software development capabilities across Infosys’ global developer workforce. This will equip engineers with next-generation AI coding tools and agentic platforms to deliver faster development cycles, better code quality, and improved outcomes for clients.

Cursor’s platform combines frontier coding models with a secure, enterprise-grade Integrated Development Environment (IDE) to enable multi-agent development, deep codebase understanding, automated test generation, and accelerated refactoring. Enterprises using Cursor have reported a 39 percent increase in shipped pull requests on average, alongside faster development cycles, improved test coverage, and significantly reduced effort for legacy refactoring.

 Michael Truell, CEO and Co-Founder, Cursor, said, “Infosys’ commitment to building an AI-first organization makes them a natural collaborator for Cursor. Their global scale, delivery rigor, and deep industry expertise create an ideal environment to demonstrate what AI software engineering tools can achieve in the enterprise. We are excited to collaborate with Infosys as they enable over 100,000 software engineers at Infosys with agentic coding platforms and we look forward to helping their teams deliver breakthrough outcomes for customers worldwide.”

 Salil Parekh, Chief Executive Officer & Managing Director, Infosys, said, “Our strategic collaboration with Cursor is aimed at redefining how global enterprises build and scale AI-powered digital solutions, helping transform ideas into measurable impact. Establishing this Center of Excellence will be instrumental in equipping both Infosys developers and clients with robust, enterprise-grade tools. These resources are intended to facilitate major modernization efforts, allowing organizations to update their systems and processes efficiently and effectively. Additionally, the collaboration is strengthened by Infosys Topaz Fabric, which will accelerate modernization and foster innovation, empowering clients to reach their strategic goals.”

Telecommunications giant Nokia Corporation is keen on setting up a Global Capability Centre (GCC) and research centres in Karnataka, state Industries Minister M.B. Patil said on the sidelines of the World Economic Forum summit in Davos.

Nokia, which has a 25-year presence in the state and operates its largest global research centre in Bengaluru, has held discussions with the state government on expanding its operations across Karnataka, including in Tier-2 cities, Patil said.

The development comes as the state government continues to woo technology companies and startups, with a focus on sustainable urban development and innovation-driven initiatives.

Nokia’s potential expansion plans in Karnataka are seen as a vote of confidence in the state’s growing technology ecosystem and its ability to attract large-scale investments.

Karnataka’s growing appeal

The state government’s efforts to create a conducive business environment and invest in infrastructure development have made it an attractive destination for technology companies.

The World Economic Forum’s ‘Yes–BLR UpLink’ initiative, which seeks to develop the ‘Yes Bengaluru’ programme on sustainable urban development, has also received support from the state government.

The initiative provides financial assistance, mentorship, and pilot opportunities to startups working on real-world, city-centric challenges and contributing to urban development.

Other companies show interest

Nokia’s potential expansion plans are not the only development in the state’s technology sector. US-based space technology company Vast Space has expressed interest in partnering with the Karnataka government in areas related to space technology, advanced manufacturing, and innovation-driven initiatives.

Another aerospace company, Voyager Technologies, has also expressed interest in entering into a partnership agreement with the state government and collaborating with the Indian Space Research Organisation (ISRO) on space technology and research initiatives.

These developments are seen as a testament to Karnataka’s growing appeal as a hub for technology and innovation, and its potential to attract investments from global companies.

CGI, one of the largest independent  IT and business consulting services firms in the world, has been named a Major Contender in the Everest Group’s PEAK Matrix^® Assessment 2025 for both Global Capability Centre (GCC) set-up and transformation capabilities in India.

These recognitions highlight CGI’s end-to-end GCC support aligned to clients’ strategic priorities. Through flexible frameworks, skilled talent, and specialized Centres of Excellence, CGI helps clients establish, scale, and modernize GCCs, transforming them into agile, innovation-driven hubs that accelerate digital transformation, enable AI-integrated operations, and drive global agility at scale.

“In India, we are uniquely positioned to help clients unlock the full potential of their GCCs—from operational excellence to large-scale transformation. This recognition by Everest Group reflects our skilled talent and world-class delivery capabilities in India, helping organizations accelerate digital transformation, scale AI-powered operations and strengthen resilience at scale,” said Rakesh Aerath, President, Asia Pacific Global Delivery Centres of Excellence, CGI.

Insights from CGI’s annual global proprietary research reveal that organizations are pursuing a dual agenda of balancing innovation and growth with efficiency and cost control. In line with this, many organizations plan to invest in establishing and expanding their technology operations centres as part of digital transformation priorities.

“This recognition highlights CGI’s two decades of helping clients build outcome-driven, AI-enabled GCCs. By combining our proximity model with managed services, we help clients treat the GCC as an extension of their enterprise, aligned to business priorities and delivering measurable outcomes from the outset,” said Amar Aswatha, Senior Vice-President, Global Business Engineering, CGI.

Everest Group’s PEAK Matrix^® Assessments benchmark service providers on capability and market impact, drawing on provider inputs, client feedback, and industry data. For GCCs, the framework evaluates a provider’s ability to support the full lifecycle, from setup to operational excellence and strategic transformation.

The Everest Group PEAK Matrix^® Assessment is a framework that evaluates service providers, technology vendors, and solutions across global markets. Each assessment measures two key dimensions: market impact, which reflects adoption, portfolio mix, and value delivered, and vision and capability, which gauges innovation, delivery footprint, and strategic direction. 

India’s office market has concluded 2025 with a record-breaking performance, driven by strong demand from Global Capability Centres (GCCs). According to Knight Frank India’s flagship report, annual gross leasing surged to 86.4 million square feet (mn sq ft) in 2025, a 20% year-on-year increase and surpassing the previous peak achieved in 2024.

GCCs accounted for 38% of total annual transactions, with 31.8 mn sq ft of office space leased in 2025. This trend underscores India’s growing importance as a hub for research and development and other related businesses. Bengaluru, the largest office market in India, grossed 28 mn sq ft, a historic best for the city. Other major cities, including Hyderabad, National Capital Region (NCR), Pune, and Chennai, also saw significant growth.

Despite the strong demand, new office completions rose by a modest 9% year-on-year to reach 54.8 mn sq ft in 2025. This supply crunch has led to increased rents, with NCR and Hyderabad seeing the highest appreciation at 10% each. Bengaluru and Mumbai also recorded rental increases of 6% each.

The strong performance of India’s office market in 2025 is expected to continue, driven by the growing presence of GCCs and other occupiers. According to Shishir Baijal, International Partner, Chairman and MD, Knight Frank India, the current cycle marks a structural shift in how global and domestic enterprises view India as a long-term business destination.

The strong demand from GCCs and other occupiers is expected to continue driving India’s office market in the coming years. With its skilled workforce and favourable business environment, India is well-positioned to benefit from the growing trend of GCCs and other forms of outsourcing.

Key Takeaways

– India’s office market hit a record high in 2025, with annual gross leasing surging to 86.4 mn sq ft.

– GCCs accounted for 38% of total annual transactions, driving demand for office space.

– Bengaluru, Hyderabad, NCR, Pune, and Chennai saw significant growth in office leasing.

– Supply crunch led to increased rents, with NCR and Hyderabad seeing the highest appreciation at 10% each.