On Saturday, Infosys revealed that a $1.5 billion transaction with a global client had been terminated.
In September of this year, Infosys, India’s second-largest IT services company, announced the signing of a $1.5 billion deal with an unnamed global company to provide enhanced digital experience, modernization, and business operations services, leveraging Infosys platforms and AI solutions. The contract was for 15 years.
“This is in continuation to the disclosure made by Infosys vide letter dated September 14, 2023, titled “corporation update” with respect to a Memorandum of Understanding with a global company which was subject to parties entering into a Master Agreement.”
The cause for the deal’s cancelation was not disclosed in the filings.
Infosys revealed this week that it has earned a five-year contract from auto parts distributor LKQ Europe.
Other recent significant deals include a five-year $1.64 billion arrangement with London-based Liberty Global.
The deal’s cancellation illustrates the global economy’s uncertain economic situation, which has hampered the performance of the IT sector.
Infosys CFO Nilanjan Roy resigned
The company’s share prices were significantly impacted by the resignation of Infosys Chief Financial Officer (CFO) Nilanjan Roy. Roy informed the firm of his resignation on December 12th, stating that he was leaving the position to follow his “personal aspirations.”
According to an official statement from Infosys, his last day of employment as CFO would be March 31, 2024. Following that, Infosys’ executive vice president and deputy CFO, Jayesh Sanghrajka, would take over for Roy.
Infosys signed contracts of $7.7 billion in Q2 FY24. Though the TCVs of all the big IT corporations have been increasing, the transition into robust revenue growth has been slow.