Infosys has won a deal from energy firm BP to be their primary partner for end-to-end application services, the Indian IT major said. According to news reports, the deal size is $1.5 billion, making this a mega deal at a time when the industry has been facing several headwinds, and mega deals are few and far between. For the Bengaluru-headquartered firm, this marks the biggest deal since Infosys signed Daimler in late 2020.
The IT company said it will be BP’s primary partner including for development, modernisation, management, and maintenance. The focus of the two companies will be on modernising BP’s application landscape for business resilience, driving value from operational efficiencies, and building more adaptive and agile processes to speed up innovation.
Salil Parekh, chief executive officer (CEO) of Infosys, in a statement termed it as a strategic milestone in their long-standing relationship with the energy company. "As we see global momentum in energy transition, building a strong digital core and scaling it to maximise operational efficiency is a key business imperative. We are now jointly working towards enhancing digital maturity, productivity, and driving innovation for bp," he said, adding that they will use digital tech and advancements in AI.
"We are delighted to further develop our relationship with Infosys to help accelerate our digital transformation and scale growth through tech-enabled operations. Together, we look forward to delivering innovative solutions that meet the evolving needs of our customers and drive growth for the future," Leigh-Ann Russell, EVP, Innovation & Engineering, bp, said.
In April, Infosys clocked a 7.8 per cent year-on-year (YoY) rise in consolidated net profit at Rs 6,128 crore in March quarter (Q4) of FY23, and gave 4-7 per cent revenue growth forecast for FY24 amid macro-economic uncertainties. The net profit (after minority interest) stood at Rs 5,686 crore in the fourth quarter of FY22. Seen sequentially, the net profit for Q4 came in 7 per cent lower. The results were below Street estimates.
Infosys has given revenue growth guidance of 4-7 per cent for FY24. The company, during Q3 earnings announcement in January this year, had raised FY23 revenue guidance to 16-16.5 per cent against the previously projected band of 15-16 per cent.