Indian IT giant
Infosys
has announced that a global company has decided to terminate a multi-year contract worth 1.5 billion with it. The company revealed the same in a corporate filing on stock exchange,
BSE
.
What Infosys statement to BSE says
In a BSE filing on December 23, Infosys said that the global a company has terminated the Memorandum of Understanding (MoU) with it.
Here's the company's statement as it appears on BSE website:
"This is in continuation to the disclosure made by Infosys vide letter dated September 14, 2023, titled “Company update” with respect to a Memorandum of Understanding with a global company which was
subject to parties entering into a Master Agreement. The global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement. This is for your information and records."
When was the deal signed
Infosys had signed the deal earlier this year. On September 14, 2023, Infosys had announced a deal with a global company to offer enhanced digital experiences alongside modernisation and business operations services leveraging Infosys platforms and AI (Artificial Intelligence) solutions.
"The total client target spend over 15 years is estimated at USD 1.5 billion," Infosys had said in a statement then.
The deal loss comes at a time when global uncertainties and macro headwinds have challenged IT and tech companies worldwide. In fact, the UK economy contracted in the third quarter according to official estimates, and experts have cautioned that Britain could already be at risk of a recession.
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