Infosys wins large deal worth $454 million from Denmark’s Danske Bank
Infosys has bagged $1.5 billion deal from BP in May. The large deal momentum remains strong with big firms winning those frequently
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Bengaluru: Country’s second largest IT firm Infosys has bagged a large outsourcing contract worth $454-million from Denmark’s Danske Bank amid a weak demand environment.
The five-year long deal can be renewed for another three years, giving a scope to the contract to be ramped up to $900 million, the company said in a filing. Infosys expects the transactions to be completed before Q2FY24.
The mega deal will also see Infosys acquiring the Danish lender’s IT centre in India and bringing on board its 1,400 employees. Such rebadging exercise is a reflection of a growing trend under which enterprises are outsourcing more from their inhouse centres to third-party vendors.
“Infosys will collaborate with Danske Bank to strengthen their core business with greater digital, cloud and data capabilities. This will help Danske Bank create more value for their customers using powerful advances in Al, including generative Al,” Infosys Chief Executive Officer, Salil Parekh said.
"This will help Danske Bank create more value for their customers using powerful advances in AI, including generative AI," he added. Infosys will deploy Infosys Topaz, its recently launched Generative AI suite of services, to transform the IT operations of Danske Bank globally.
Danske Bank’s Chief Operating Officer Frans Woelders said, “"Infosys has the tools, experience, and expertise to support us in accelerating our digital transformation using cloud and AI technologies. Given Infosys’ global presence and scale, this collaboration will also give us access to wider talent pools and capabilities."
In May, Infosys bagged a $1.5-billion contract from BP, making it one of the biggest outsourcing contracts in the current financial year.
Last week, TCS has won a deal worth around $1.1 billion from UK’s largest workplace pension scheme, NEST. The company won another large deal from the UK’s Standard Life International DAC on Monday.
Large cost take-out deals are coming to the market as enterprises globally are facing huge cost pressure. Especially, Europe has emerged as one of the growth spots for Indian IT industry with most deals coming from this geography though the US is showing signs of recession.
Large deals are important for improving the revenue growth rates of domestic IT firms which are likely to see growth rate coming down to multi-year low level in FY24.
Experts in the know said that though large deal wins are important, project ramp ups should happen fast for its accrual in revenue. In the last two quarters, many firms were not able to see much revenue addition despite strong large deal pipeline as clients go slow on implementation.
