After $1.5-bn blow last year, Infosys scores a $300-mn win

In December, Infosys announced the termination of a $1.5 billion AI contract with a global customer. (File Photo: Reuters)
In December, Infosys announced the termination of a $1.5 billion AI contract with a global customer. (File Photo: Reuters)

Summary

  • This marks Infosys's second significant multi-year contract announcement within a month, following a seven-year agreement with Irish food retailer Musgrave on 31 January

Bengaluru: Recovering from the loss of a billion-dollar deal in December, Infosys has kicked off 2024 with momentum, securing two significant contracts. The most recent is a $300 million contract with Singapore-based Pacific International Lines running until 2027, according to industry executives.

Although Infosys had disclosed the Pacific International deal to stock exchanges on 13 February, the value and the duration of the contract was not announced. Under the agreement, Infosys will oversee the shipping company's IT infrastructure and support its digital overhaul.

Emails sent to Infosys and Pacific International Lines went unanswered until press time.

In December, Infosys announced the termination of a $1.5 billion AI contract with a global customer. That was Infosys’s biggest AI deal announced so far.

The Singapore deal marks Infosys's second significant multi-year contract announcement within a month, following a seven-year agreement with Irish food retailer Musgrave on 31 January to automate its IT functions using AI and cloud solutions. 

For the December-ended quarter, Infosys announced large deal total contract value of $3.2 billion in Q3FY24, a decline from $7.7 billion in 2QFY24. This includes a net new of 71%.

Infosys and its peer Tata Consultancy Services have secured at least four new deals since the start of 2024, highlighting demand recovery in a sector lulled by global uncertainties and reduced discretionary spending.

Karmesh Vaswani, executive vice president and global head of Retail, Consumer Goods & Logistics at Infosys, emphasized the company's commitment to enhancing Pacific International's customer portals with simple, intuitive, and enriching experiences, utilizing the AI-powered Infosys Topaz suite.

Phil Fersht, chief executive of US-based HFS Research, noted that this partnership allows Infosys to broaden its application of the Topaz AI suite in the lucrative logistics and supply chain sectors.

Infosys is already established in Southeast Asia, with clients like Starhub Ltd in Singapore and a joint venture with Temasek Holdings, Infosys Compaz, catering to the ASEAN market.

Experts point out the increasing reliance of shipping companies on technology, as illustrated by recent pirate attacks in the Red Sea, highlighting the industry's challenges.

Nitish Mittal, a partner at the Everest Group, remarked on the significance of the Infosys-Pacific International deal for the logistics and shipping industry's ongoing tech-driven modernization. 

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