Infosys bags five-year deal pegged at $2bn with existing client

This is a closure of an existing deal that Infosys had, and not a new deal of $2 billion. The company did not divulge who the client was.

Infosys has received a deal with an existing client for AI and automation-led development, modernisation, and maintenance services, with a total spend estimated at $2 billion over 5 years, the company informed the stock exchanges late on July 17. This is a closure of an existing deal that Infosys had, and not a new deal of $2 billion. The company did not divulge who the client was.

“Infosys has entered into framework agreement with one of its existing strategic clients to provide AI and automation-led development, modernization and maintenance services. The total client target spend over 5 years is estimated at USD 2 Bn,” Infosys said.

So far this year, the company has announced two mega deals: its $1.5 bn deal with British oil and gas company bp and $454-mn deal with Danske Bank. 

It also comes just days before the company is slated to report its numbers for the first quarter of FY24 on July 20, at a time when its peers have cautioned about uncertainty, sluggish or waning growth, and rampdowns. Infosys is expected to report muted growth during the quarter, but still ahead of peers who have seen a degrowth.

The IT major has given a revenue growth guidance of 4-7 percent in constant terms for FY24, and operating margin guidance of 20-22 percent.