IT major Infosys has signed an agreement with one of its existing clients. With a $2 billion value, the deal is spread over five years, according to an exchange filing.
The company did not disclose the name of the client. The filing read, “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.”
This comes ahead of the company’s first-quarter earnings to be reported on July 20. So far, its peers Wipro, TCS, and HCL Tech have posted results, most below market expectations.
Also read: HCLTech Q1 results: After weak quarter, meeting FY24 guidance will be a challenge
In Q4, Infosys reported a 7.8 per cent year-on-year (y-o-y) rise in net profit at ₹6,128 crore, missing street expectations. On a sequential basis, the profit dipped 7 per cent from ₹6,586 crore in Q3, weighed down by a tough macro-environment.
Recently, Infosys signed a strategic collaboration deal with Danske Bank, a Nordic bank, to accelerate the bank’s digital transformation initiatives. The $454 million deal will be in force for five years with an option to renew for an additional year for a maximum of three times.
This collaboration was to help Danske Bank achieve its strategic priorities towards better customer experiences, operational excellence, and modernised technology landscape. It also acquire Danske Bank’s IT centre in India, where over 1,400 professionals are employed.
Published on July 18, 2023
