Infosys has secured a $454-million deal for the digital transformation of Denmark’s Danske Bank, the company announced on 26 June, the latest IT services firm to sign a major deal amid a slowdown in the sector.
The projected agreement is for five years with the possibility to renew for an extra year up to three times.
The agreement shall help Danske Bank to accomplish its strategic priorities of enhanced client experiences, operational excellence, and a modernized technological environment powered by next-generation technologies.
Under this agreement, Infosys will also buy Danske Bank’s IT centre in India, which employs more than 1,400 people.
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As per the exchange filing, Infosys expects the deal transactions to be concluded by the second quarter of fiscal year 2023, subject to customary closing conditions.
“Infosys will collaborate with Danske Bank to strengthen their core business with greater digital, cloud and data capabilities,” said Salil Parekh, Chief Executive Officer & Managing Director, Infosys.
“This will help Danske Bank create more value for their customers using powerful advances in AI, including generative AI," he added.
Danske Bank, headquartered in Denmark, offers banking services to individuals, businesses, corporations and institutions.
The deal would accelerate the bank’s digital agenda by enhancing its IT operations and capabilities with Infosys Topaz, its recently announced AI-first offering, the bank said in a statement.
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The announcement comes after major rival TCS signed a mega-contract worth $1.1 billion deal from UK’s NEST.
Shares of the Bengaluru-based company were trading almost flat after the deal announcement. At 11:54 pm, Infosys shares were trading 4.60 points or 0.36 per cent up at 1,270.25.
