Infosys bags $2B deal to provide AI and automation services
The large deal win for Infosys will provide a boost to the company, given the subdued business environment at present.
India’s second largest IT services exporter has bagged a $2 billion deal from one of its existing clients to provide artificial intelligence (AI) and automation related services. The name of the client was not disclosed.
In a notice to stock exchanges, the company said, “Infosys has entered into framework agreement with one of its existing strategic clients to provide AI and automation led development, modernisation, and maintenance services. The total client target spend over five years is estimated at $2 billion.”
Infosys will announce its first quarter results for FY24 on July 20.
The Indian IT services industry at the present is undergoing certain challenging times with a slowness in demand from the market and bagging large deals becomes a key factor to ensure the growth momentum.
The commentary from other Indian IT services companies like Tata Consultancy Services, Wipro, and HCLTech following their announcement of first quarter results reveal several challenges from the market. Their first quarter performance has shown either a flattish or decline in revenue for the first quarter.
However, the pipeline of deals for these companies still remains strong, running into billions of dollars, though the key point will be when the conversion will take place as actual business. As of now, there is a certain period of uncertainty in the macroeconomic environment, which slowed down the demand for the Indian IT services companies.
TCS, close to a month ago, had announced that it had bagged a $1 billion contract from National Employment Savings Trust (NEST), a workplace pension scheme in the UK, in a deal spread over a period of 10 years. This deal has the potential to grow to $1.9 billion if the contract completes 18-year tenure.