Information technology major Infosys informed that a global client has decided to terminate the Memorandum of Understanding (MoU) signed in September. The MoU pertained to Infosys providing enhanced digital experiences, along with modernisation and business operations services, leveraging the company’s platforms and Artificial Intelligence (AI) solutions.

Inked in September 2023, this was intended to be a 15-year deal estimated at $1.5 billion. However, this was subject to the parties entering into a master agreement. Both parties will not be pursuing the master agreement now and the MoU stands terminated. “The global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the master agreement,” the company said in its filing.

Pressure mounts

The termination of the deal comes less than two weeks after the Bengaluru-based company’s chief financial officer (CFO) Nilanjan Roy suddenly resigned after holding the position for around six years. However, the deal loss indicates further pressure on Infosys and other IT companies in India to drift over the muted business over the past three to four quarters.

Infosys had won deals worth $7.7 billion in the September quarter. Last week, Infosys had also won a five-year deal from auto parts distributor LKQ Europe. Infosys had recently signed a $1.64 billion deal with London-based Liberty Global for a five-year period. It had also inked a $2 billion deal with an existing client in July and a $454 million deal with Danske Bank.

IT major Infosys has trimmed its FY24 guidance from 1-3.5 per cent to 1-2.5 per cent as woes of reduction in discretionary spending and delay in decision-making persist amid uncertain macro environment.

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