New AI Startup Hang Ten Challenges Traditional IT Services Model
News Desk
27 June 2026, 09:52
Former Infosys CEO Vishal Sikka has unveiled a new artificial intelligence startup, Hang Ten Systems, with $32 million in seed funding, betting that AI can fundamentally change how enterprises build, maintain, and operate software.
The Bay Area-based startup announced on Wednesday that the funding round was led by Mayfield, with strategic backing from Aramco Ventures and participation from several angel investors. Hang Ten said it is developing an AI-native enterprise services platform that helps businesses continuously build, modify, and manage software using AI-powered development and automation.
The launch comes at a time when the global IT services industry is rapidly adapting to generative AI, with established firms racing to integrate AI technologies into their consulting and software development businesses.
An AI-First Approach to Enterprise Software
For decades, IT services companies have generated billions of dollars by helping organizations customize, integrate, and maintain enterprise software. Hang Ten is taking a different approach by using AI agents, reusable AI capabilities, and domain expertise to automate much of that work.
According to the company, it is already working with customers including Siemens Gamesa Renewable Energy and Fresenius to deliver AI-native software projects. Mayfield Managing Partner Navin Chaddha told TechCrunch that although the startup launched only recently, it has already secured enterprise customers.
Sikka brings decades of enterprise software experience to the venture. Before leading Infosys, he spent 12 years at SAP and later served on Oracle's board. Hang Ten's leadership team also includes several executives who previously worked alongside him at SAP, Infosys, and his earlier AI startup, VianAI.
Founded after Sikka stepped down as Infosys CEO in 2017, VianAI focused on enterprise AI applications and analytics. Hang Ten, however, is positioned differently, concentrating on AI-driven software engineering and enterprise services rather than AI-powered business analytics.
The startup said it is hiring across engineering, product delivery, sales, and leadership roles as it expands its operations globally.
AI Reshapes the IT Services Industry
Hang Ten enters the market as AI continues to reshape the economics of enterprise technology services.
Traditional IT services firms typically expand by hiring more engineers and consultants. Mayfield believes Hang Ten's AI-first model offers a different path, arguing that the company's capabilities can improve with each customer engagement rather than relying solely on workforce growth.
The startup's launch also comes amid an industry-wide debate over AI's long-term impact on IT services. Some analysts believe AI could disrupt conventional outsourcing models by automating software development and maintenance tasks that have traditionally required large engineering teams.
Others see AI as an opportunity to expand the industry's overall market. Infosys Chairman Nandan Nilekani recently said AI could increase demand for technology services rather than replace them. Infosys has also told investors that AI-first services could become a market worth between $300 billion and $400 billion by 2030.
Whether AI will ultimately transform or expand the IT services business remains uncertain. Still, startups such as Hang Ten are betting that enterprises will increasingly seek AI-native alternatives to traditional consulting models.
