Infosys, one of the largest IT services companies in India, has announced that it has lost a $1.5 billion contract with a global client that was focused on artificial intelligence (AI) solutions. The contract, which was signed in September 2023, was intended to be a 15-year deal that would provide digital transformation and modernization services to the client, leveraging Infosys’ platforms and AI capabilities.
However, the client has decided to terminate the Memorandum of Understanding (MoU) that was signed between the two parties, and will not be pursuing the master agreement. Infosys did not disclose the name or the industry of the client, citing confidentiality reasons. Infosys also did not provide any specific reason for the termination of the contract, but said that it was due to the client’s “business priorities”.
The loss of the contract is a major setback for Infosys, which had reported a strong performance in the previous quarter, with a 17.5% year-on-year growth in revenue and a 20.5% year-on-year growth in net profit. The contract was also one of the largest deals that Infosys had ever won, and was expected to boost its revenue and margins in the long term.
The termination of the contract also raises questions about the demand and viability of AI solutions in the market, especially in the wake of the COVID-19 pandemic, which has disrupted many businesses and industries. They had claimed that the contract was a testament to its leadership and expertise in AI, and that it would help the client achieve its strategic goals and objectives.
It said that it will continue to pursue other opportunities in the AI domain, and that it remains confident in its ability to deliver value to its customers and stakeholders. Infosys also said that it will update its guidance for the fiscal year 2024, taking into account the impact of the contract termination, in its third quarter results, which are expected to be announced in January 2024.
Infosys, a leading IT services company in India, has lost a $1.5 billion contract with a global client that was focused on AI solutions. The contract, which was signed in September 2023, was intended to be a 15-year deal that would provide digital transformation and modernization services to the client, using Infosys’ platforms and AI capabilities. However, the client has decided to terminate the contract, citing its business priorities.
The loss of the contract is a major setback for Infosys, which had reported a strong performance in the previous quarter, and was expected to boost its revenue and margins in the long term. The termination of the contract also raises questions about the demand and viability of AI solutions in the market, especially in the wake of the COVID-19 pandemic. Infosys said that it will continue to pursue other opportunities in the AI domain, and that it will update its guidance for the fiscal year 2024, taking into account the impact of the contract termination, in its third quarter results.
Infosys Applied AI, which helps enterprises adopt a comprehensive approach and roadmap to scaling enterprise-grade AI for their businesses. It converges the power of AI, analytics and cloud to deliver new business solutions and perceptive experiences.
Infosys Generative AI Labs, which empowers everyone within and beyond the enterprises to lead the generative revolution and make change happen as they imagine it. It brings together ready-to-use industry solutions, a large partner ecosystem, accelerators, and responsible design frameworks.
Infosys Computer Vision and Image analytics services, which are part of Infosys’ advanced engineering group and operate through Pune, Mysore and Bangalore centers. It focuses on research on emerging topics such as computer vision for autonomous systems, deep learning, behavioral algorithms, audio analysis and AI on EDGE
It has also won several awards and recognitions for its AI capabilities, such as being positioned as a leader for the second time in the IDC MarketScape: Worldwide Artificial Intelligence Services 2023 Vendor Assessment. Infosys has also collaborated with various partners, such as Google Cloud, NVIDIA, and Liberty Global, to deliver AI-powered solutions to its clients. Infosys has also adopted ethical principles and standards for the design, development, and deployment of AI, such as fairness, transparency, explainability, and accountability.
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