Infosys signs $1.5-billion deal to provide AI solutions

IT major Infosys has signed a $1.5-billion deal for a time period of 15 years, with an undisclosed global company, according to exchange filing. 

The company will provide digital experiences with modernisation and business operations services by leveraging Infosys’ platforms and AI solutions. Infosys has not revealed if its an existing or a new client.

“Infosys has entered into a memorandum of understanding with a global company to provide enhanced digital experiences and modernisation and business operations services, leveraging Infosys platforms and AI solutions. The total client target spend over 15 years is estimated at $1.5 billion. This is subject to parties entering into a master agreement,” the filing read. 

Multiple deal wins

The company, in the recent past, has made multiple deal win announcements. It signed a $1.64-billion deal with London-based telecom player Liberty Global for a definitive five years. It has also signed a $2-billion deal with an existing client in July. Infosys also signed a $454-million deal with Danske Bank and a $1.5-billion deal with British oil and gas company BP. 

In Q1, Infosys’ total contract value of large deals stood at $2.3 billion against $2.1 billion in Q4. The management also noted that there is a delay in decision-making among clients and the deals would materialise into revenue only in the later part of the year. Infosys had lowered its revenue guidance steeply to 1-3.5 per cent from 4-7 per cent in Q1. 

Albeit, strong and continued deal-win momentum not just for Infosys, but the sector at large is indicating that the macroeconomic concerns are bottoming out and a growth bounce back can be seen by the end of the fiscal.

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