Infosys loses $1.5 billion deal with global firm
Infosys announced the termination of its $1.5 billion agreement with an undisclosed global company, focused on artificial intelligence (AI) solutions, signed in September.
The Salil Parekh-led IT services giant had announced the $1.5 billion contract for a 15-year period, inked on September 14, 2023.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteNorthwestern UniversityKellogg Post Graduate Certificate in Product ManagementVisitIIM KozhikodeIIMK Senior Management ProgrammeVisitIndian School of BusinessISB Product ManagementVisit“The global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement,” Infosys said in a stock exchange filing on Saturday.
The scope of the now-terminated deal was to provide digital transformation and modernisation of business operations services through Infosys' platforms and AI solutions. Infosys did not name the global company nor did it mention if it is an existing client.
Incidentally, this comes less than two weeks after the Bengaluru-based company's chief financial officer (CFO) Nilanjan Roy suddenly resigned after being in the position for around six years.
Large deal wins signal interest in client spend, helping software services firms to grow their revenues. However, the deal loss indicates further pressure on Infosys and possibly other IT companies to tide over the muted business over the past three to four quarters.
This combined with senior-level management churn with at least eight exits over the last 12 months could be discomforting for Infosys' future growth trajectory.
However, it has made some deal announcements over the past few months.
Last week, Infosys
