Digital transformation deals back in play with a cost twist
digital transformation deals after about two years. The new contracts, however, contain cost-saving provisions.
Several transformation deals announced by homegrown IT firms in the last 4-5 months have originated from the Nordic region. These include Infosys’ deal with Denmark’s TDC Net, a digital infrastructure and connectivity provider; HCLTech’s deal with Finland’s Oriola Corporation, a health and wellbeing company; and TCS’ multi-million-dollar contracts with digital connectivity and communications provider Nuuday and Ramboll—both from Denmark.
Infosys and Wipro also secured deals from Sweden’s Ikea and Finland’s Nokia.
All the deals involve a large amount of transformation work.
To be sure, digital transformation deals also originated from other regions in the last 4-5 months. This includes a $355-million deal between TCS and US-based Xerox. Also, Cognizant secured three deals in the last two months from UK-based Hays and Whitbread and US-based Victory Capital. Adding to the non-Nordic count, LTIMindtree and Wipro won transformation deals from Absa Bank of South Africa and Hanesbrands from US, respectively.
Experts say after a lull of 1.5-2 years dominated by cost-takeout deals, transformation deals have made a comeback, though as “savings-led transformation” deals.
“Early signs of shifting the focus away from cost-takeout deals: Clients are transitioning from cost-cutting measures to prioritising the high-impact transformation initiatives. This includes resuming data and ERP modernisation projects that
