Infosys loses $1.5B deal from a global company
Infosys in September had announced that it had entered into an MoU with a global company to provide enhanced digital experiences, along with modernisation and business operations services, leveraging its platforms and AI solutions.
Infosys, India’s second largest IT services exporter, has lost the $1.5-billion deal with a global company, which it had announced in September.
In a notice to the stock exchanges the company said, “The global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement.”
On September 14, had said that it had entered into a memorandum of understanding with a global company to provide enhanced digital experiences, along with modernisation and business operations services, leveraging its platforms and AI solutions.
The total client target spend over 15 years was estimated at $1.5 billion and was subject to the parties entering into a master agreement.
Hiring outlook for Indian IT industry weakens on global macro woes, slow discretionary spends
Infosys did not disclose the name of the global company.
For the second quarter of FY24, Infosys reported a 3.1% year-on-year rise in net profit while revenue grew 6.7% during the same period. However, it provided very tepid guidance for the ongoing financial year, as it expected revenue growth to be 1-2.5%.
The company recently announced that its CFO Nilanjan Roy would be leaving the organisation due to personal reasons and exploring external growth opportunities. Deputy CFO Jayesh Sanghrajka will be taking over the role.
The overall market continues to be challenging for the Indian IT industry as the demand for IT services from key geographies like North America and Europe remains muted.