Infosys signs $454 mn IT contract with Danske Bank

Infosys, India’s No.2 IT services provider, has signed a $454-million IT contract with Denmark’s Danske Bank.
infosys-job-in-technologyWorldwide banking and investment services IT spending is forecast to total $652.1 billion in 2023, an increase of 8.1% from 2022, according to Gartner report.

Spending on IT services by banking and investment services organization will grow 9.3 percent to $269.735 billion this year as compared with 5.2 percent increase in 2022.

The deal, which includes Infosys acquiring Danske Bank’s IT centre in India with 1,400 employees, is for five years with an option to renew for one more year for a maximum of three times, Infosys said in a regulatory filing.

“Infosys will collaborate with Danske Bank to strengthen their core business with greater digital, cloud and data capabilities,” said Infosys CEO Salil Parekh.

Infosys expects the transactions with Danske Bank to be completed before the second quarter of this financial year.

Infosys will accelerate the bank’s digital agenda by significantly enhancing their IT operations and capabilities, powered by Infosys Topaz, an AI-first set of services, solutions and platforms, experience design, and services that support operations.

Infosys in April forecast revenue growth would hit a six-year low this fiscal year on slowdown worries.

Rival TCS signed a contract worth 840 million pounds with British pension scheme Nest for an initial tenure of 10 years last week.

That IT contract deal came on the heels of TCS terminating a $2-billion contract with insurance provider Transamerica, citing reasons that included a challenging macro environment.

“Our Forward ’28 strategy sets clear ambitions for Danske Bank to be a leading bank in a digital age. This is backed by significant investments in digitalisation and technology, including plans to further develop our customer-facing digital solutions, and modernising our technology infrastructure,” Frans Woelders, Chief Operating Officer, Danske Bank, said.

Infosys has acquired BASE Life Science in Denmark and Fluido in Finland, and opened a new proximity center in Gothenburg, Sweden and Oslo, Norway in order to enhance its localization strategy in the Nordics.

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