Infosys Loses $1.5 Billion Deal with Global Company, CFO to Step Down
- ByStartupStory | December 26, 2023
Infosys, India’s second-largest IT services exporter, has confirmed the termination of a $1.5 billion deal with a global company that it had announced in September. In a notice to the stock exchanges, the company stated, “The global company has now elected to terminate the Memorandum of Understanding, and the parties will not be pursuing the Master Agreement.”
On September 14, Infosys had revealed that it had signed a memorandum of understanding with a global company to deliver enhanced digital experiences, modernization, and business operations services using its platforms and AI solutions. The estimated total client spend over 15 years was $1.5 billion, contingent upon the execution of a master agreement. However, Infosys did not disclose the name of the global company.
In its financial report for the second quarter of FY24, Infosys recorded a 3.1% year-on-year increase in net profit, with revenue growing by 6.7% during the same period. Despite these figures, the company provided a cautious outlook for the ongoing financial year, expecting revenue growth to be in the range of 1-2.5%.
Adding to the company’s changes, Infosys announced that its CFO, Nilanjan Roy, would be leaving the organization due to personal reasons and to explore external growth opportunities. Jayesh Sanghrajka, the Deputy CFO, is set to succeed Roy in this role.
The broader market conditions continue to pose challenges for the Indian IT industry, with subdued demand for IT services from key geographies like North America and Europe.
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