Infosys AI Contract: Infosys decides to terminates $1.5 billion AI deal with global client


Infosys AI Contract: According to sources, Infosys announced the $1.5 billion contract for a 15-year term that will be signed on September 14, 2023.

Infosys AI Contract
Infosys announced the $1.5 billion contract for a 15-year term that will be signed on September 14, 2023. (Pics Credit: iStock)

 

On Saturday, December 23, Infosys said that it has terminated a $1.5 billion agreement struck in September with an unknown worldwide company focused on artificial intelligence (AI) solutions.

According to a source in the business daily Economic Times, the IT services major announced the $1.5 billion contract for a 15-year period, which will be signed on September 14, 2023.

”This is in continuation to the disclosure made by Infosys via letter dated September 14, 2023, titled “company update” with respect to a Memorandum of Understanding with a global company that was subject to parties entering into a Master Agreement,” the Salil Parekh-led firm said in a regulatory filing to the stock exchanges.

”The global corporation has now opted to dissolve the Memorandum of Understanding, and the parties will not pursue the Master Agreement,” Infosys continued.

According to sources, Infosys and the worldwide corporation announced an agreement to “enhance digital experiences leveraging Infosys platforms and AI solutions.” The $1.5 billion goal spending was planned to be spread out over 15 years. The corporation provided no explanation for the project’s discontinuation.

Also Read: Newly-formed WFI body led by Sanjay Singh suspended by Sports Ministry

Infosys AI Contract: The agreement was terminated less than two weeks after the Bengaluru-based company’s chief financial officer (CFO), Nilanjan Roy, abruptly quit after nearly six years in the role. The deal loss, however, adds to the pressure on Infosys and other Indian IT firms to drift over the past three to four quarters of sluggish activity.

In the July-September quarter of the current fiscal year, Infosys’ net profit increased 3.17 percent to 6,212 crore, up from 6,012 crore in the same period previous year. The IT behemoth has reduced its full-year revenue growth forecast to 1-2.5 percent on the high end. Infosys received $7.7 billion in significant deals during the September quarter.

Infosys said this week that it has won a five-year contract with auto parts distributor LKQ Europe. Other recent significant deals include a five-year $1.64 billion arrangement with London-based Liberty Global. On January 11, 2024, Infosys will report its earnings for the October-December quarter.

In the previous session, Infosys shares closed 1.68 percent higher on the BSE at 1,562 per share.

 


1 thought on “Infosys AI Contract: Infosys decides to terminates $1.5 billion AI deal with global client”

Leave a Comment