Infosys loses $1.5 billion contract
IT services firm Infosys announced the termination of a multi-year contract worth USD 1.5 billion by a global company. The termination follows Infosys’ September 14, 2023, announcement of a pact with the same company to provide enhanced digital experiences, modernization, and business operations services, utilizing Infosys platforms and AI solutions. The termination of the Memorandum of Understanding (MoU) was disclosed in a BSE filing, indicating that the parties will not be pursuing the master agreement initially outlined in the MoU.
The deal loss for Infosys occurs amid global uncertainties and macroeconomic challenges impacting IT and tech companies worldwide. The UK economy, for instance, has contracted in the third quarter, raising concerns about a potential recession. This development reflects the broader challenges faced by technology firms in the current economic landscape.
