Infosys wins $2B deal for AI and automation services
- ByStartupStory | July 18, 2023
Infosys, India’s second-largest IT services exporter, has successfully won a substantial $2 billion deal from an undisclosed existing client to provide artificial intelligence (AI) and automation services. The company has entered into a framework agreement with the client for AI and automation-led development, modernization, and maintenance services over the next five years.
This significant deal comes at a crucial time for the Indian IT services industry, which is currently facing challenges due to a slowdown in market demand. Large deals like this play a pivotal role in sustaining growth momentum for IT firms. Other Indian IT giants such as Tata Consultancy Services, Wipro, and HCLTech have reported challenges in their recent first-quarter results, with either flat or declining revenues.
Despite the challenging business environment, there is optimism regarding the pipeline of deals for these IT companies, which amounts to billions of dollars. However, the conversion of these potential deals into actual business remains a key concern. The macroeconomic uncertainty has led to a slowdown in demand for Indian IT services, contributing to the subdued business environment.
In a previous instance, TCS announced securing a $1 billion contract from the National Employment Savings Trust (NEST) in the UK. This deal spans a period of 10 years and has the potential to grow to $1.9 billion if the contract completes an 18-year tenure. The IT industry is closely watching how these large contracts unfold amidst the current economic conditions.
Infosys is expected to announce its first-quarter results for FY24 on July 20, and this significant $2 billion deal is anticipated to provide a significant boost to the company’s performance.
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