Infosys bags $2Bn AI deal with existing client amid global AI push
Infosys, one of the first-movers when it comes to using AI in the IT industry, continues to make further inroads. In a filing with the stock exchanges, the company announced that it has entered into a framework agreement with an existing client to provide AI and “automation led development, modernization and maintenance services.” This development comes even as the competition intensifies between companies such as global tech giants Microsoft and Google in the AI game, and signals India’s growing prowess in delivering cutting-edge AI solutions.
According to Infosys’ exchange filing, the deal is set to span over a period of five years, with a target spend estimated at $2 billion. The name of the client in question was not disclosed in the exchange filing. The partnership presents an opportunity for Infosys to apply its AI expertise to modernize and optimize the client’s services, leading to improved efficiency and productivity, and time will determine its success. This announcement comes days before Infosys’ results for Q1 FY 2023-24 are set to be revealed.
“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 USD 2 Bn. This is for your information and records,” the company wrote in its statement. This comes a few months after the Bengaluru-headquartered company launched Infosys Topaz – a generative AI-first offering that Infosys claims will “accelerate business value for global enterprises.”
Already, Indian enterprises are hard at work to establish themselves as reliable partners in the AI industry, especially amidst the rapid development and investments witnessed by the sector ever since OpenAI’s ChatGPT came out. The success of the AI-powered chatbot has already persuaded the likes of Microsoft and Google to roll out their own generative AI-offerings, and a host of new AI tools (chatbots and otherwise) have been launched by several companies (big and small alike) to cash in onto the AI trend.
In the Indian scenario, apart from Infosys, its rival Tata Consultancy Services (TCS) announced that it planned to train 25,000 engineers to get them certified on Microsoft’s Azure Open AI, while Wipro aims to invest $1 billion into AI over the next three years. The current agreement between Infosys and its strategic client carries significant implications for the Indian AI industry. India aims to emerge as a key player in the AI sector, with numerous companies and startups actively pursuing AI-driven solutions across various domains. Infosys’ strong presence and expertise in AI is expected to contribute to the growth and development of the Indian AI ecosystem, as well as reinforces the company’s position as a leading player in the global AI landscape.
