Infosys loses $1.5-billion contract from global firm

In September, Infosys entered a 15-year, USD 1.5 billion deal with an undisclosed global client focusing on artificial intelligence solutions. The unexpected termination was announced on Saturday when the global client chose to discontinue the Memorandum of Understanding (MoU).In a filing on the exchanges, Infosys said, “The global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement.” 

“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 reason for the cancellation of the deal has not been mentioned in the filings. Last week, Infosys announced that it had won a five-year deal from auto parts distributor LKQ Europe.Its other recent large deals include a $1.64 billion deal with London-based Liberty Global for five years.The cancellation of the deal highlights the uncertain economic condition in the global economy, which has impacted the IT sector’s performance.