Infosys secures a $2 billion five-year contract with an established client

18 Jul 2023 , 01:03 PM

Infosys announced late on July 17 that it has acquired a contract for development, modernization, and maintenance services driven by AI and automation from an existing client. The contract is expected to cost $2 billion over the course of five years. This is not a $2 billion new agreement for Infosys; rather, it is the closing of an old one. The client’s identity was kept a secret by the business.

‘Infosys and one of its current strategic clients have entered a framework agreement for the provision of AI and automation-led development, modernization, and maintenance services. The anticipated USD 2 Bn total client goal spent over a five-year period was provided by Infosys.

The corporation has already disclosed two significant deals this year: a $454 million agreement with Danske Bank and a $1.5 billion agreement with British oil and gas company bp. 

It also occurs at a time when the business’s competitors have issued warnings about uncertainty, slow or declining growth, and ramp downs, just days before the company is scheduled to release its financial results for the first quarter of FY24 on July 20. Infosys is anticipated to announce modest growth for the quarter, but will still outperform its competitors that experienced degrowth.

For FY24, the big IT company has predicted revenue growth of 4–7% in constant terms and an operating margin of 20–22%.

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