As on 26th june Infosys signs a $454 million dollar deal with Nordic based-Danske Bank.
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About the deal
The deal includes acquisition of Danske Bank’s IT centre in India which employs 1400 people by Infosys for a tenure of five years. The deal can be extended for a maximum of additional three years. “Infosys will collaborate with Danske Bank to strengthen their core business with greater digital, cloud and data capabilities,” said Infosys CEO Salil Parekh. Transactions are expected to get completed before the second quarter of this financial year. According to a press release this deal will help Danske bank to better its customer experience and technology modernisation.
Reason for the deal
This deal comes as the biggest rival TATA Consultancy services announced about their partnership with UK workplace pension scheme NEST worth $1.9 billion. “We wish to inform that the contract value was signed for £840 million with an initial tenure of 10 years. The total maximum estimated value of the contract, if extended to the entirety of its eighteen-year tenure, will be £1.5 billion,” TCS said in a note to exchanges.
The objective of the deal between Infosys and Danske Bank is to transform its scheme administration services. The deal comes as the Indian IT services faces challenges in their key markets i.e. United States and Europe where clients have cut spends amid worries about recession.
About Infosys
Infosys is Indian multinational IT company which provides business consulting, IT and outsourcing services. The company is headquartered in Bengaluru. It is on second position in India in IT sector. It has been reported that the banking crisis in United states and Europe can provide edge to Indian IT companies just like the 2008 crisis in Indi.a IT giants like Infosys, TCS, Wipro captured parts of the captive business of banks like Citi, ABN Amro after 2008 crisis.
Infosys will accelerate the Danske Bank’s digital agenda by enhancing their IT operations and capabilities through Infosys Topaz– its AI-first set of services, solutions and platforms. For financial year 2024 Infosys prjrcted a 4-7% revenue growth.
