Infosys signs 5-year AI deal worth nearly $2 bn with existing client

Infosys said it has entered into framework agreement with one of its existing strategic clients to provide artificial intelligence (AI) and automation-led development, modernisation and maintenance services.  

The total client target spend over 5 years is estimated at $2 billion, the company said in an exchange filing.

Infosys did not share further details on the client or the agreement as it will be reporting its first quarter earnings on July 20.  

IT services players in India are ramping up their efforts in AI. Last week, Wipro committed to make a $1 billion investment in advancing AI capabilities over the next three years with the launch of Wipro ai360.

In May, Infosys launched Topaz, a comprehensive suite of services, solutions, and platforms that harness the power of generative AI technologies.

IT companies have been winning large deals of late. Recently, Infosys signed a strategic deal with Denmark-based Danske Bank, to accelerate the bank’s digital transformation initiatives with speed and scale. The deal is estimated at $454 million for a period of 5 years with an option to renew for one additional year for a maximum of three times. The acquisition is expected to be completed before Q2FY24.

Similarly, Tata Consultancy Services (TCS) won a deal with UK’s National Employment Savings Trust (Nest), which is worth $1.9 billion for a total contract period of 18-years. TCS also signed a 10-year contract with the Department of Education to administer and enhance customer experience for the Teacher’s Pension Scheme in England and Wales. In February this year, TCS bagged a $723 million deal with UKs Phoenix Group Holdings and a 10-year deal with UK retailer M&S.