Infosys Signs $2 Billion Deal With Existing Client To Provide AI Services

India's IT giants have been in the process of ramping up their efforts in AI. Infosys in May launched Infosys Topaz, an artificial intelligence-first set of services, solutions, and platforms

The announcement comes days before the IT service giant is set to report its first-quarter earnings. Infosys did not share details on the client or the agreement. 

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Infosys has entered into a framework agreement with one of its existing strategic clients to provide artificial intelligence (AI) and automation-led development, modernisation, and maintenance services, the IT major said on Friday. According to its exchange filing, the total client target spent over 5 years is estimated at $2 billion. 

"Infosys has entered into framework agreement with one of its existing strategic clients to provide AI and automation led development, modernization and maintenance services. The total client target spend over 5 years is estimated at $2 Bn," the exchange filing said. 

The announcement comes days before the IT service giant is set to report its first-quarter earnings. Infosys did not share details on the client or the agreement. 

In April, Infosys reported a 7.8 per cent year-on-year (YoY) rise in consolidated net profit at Rs 6,128 crore in the March quarter (Q4) of FY23, and gave a 4-7 per cent revenue growth forecast for FY24 amid macro-economic uncertainties. 

This is the third major deal the company has announced in the last few months. Earlier, India's second-largest IT services company had announced deals worth $1.5 billion with British oil and gas company bp and a $454 million deal with Danske Bank.

India's IT giants have been in the process of ramping up their efforts in the AI space. Infosys in May launched Infosys Topaz, an artificial intelligence-first set of services, solutions, and platforms using generative AI technologies.

Wipro Ltd is set to invest $1 billion in artificial intelligence (AI) over the next three years. The company has launched a service, Wipro ai360, an AI-first innovation ecosystem. It would train all of its about 250,000 employees on AI over the next 12 months.

Rival Tata Consultancy Services (TCS) also plans to train its 25,000 engineers to get them certified on Microsoft’s Azure Open AI. 

Tech Mahindra has also unveiled its gen AI studio to help enterprises bootstrap generative AI in April 2023.