India’s second-largest software services exporter Infosys has informed the stock exchanges that it has entered into a new agreement with an undisclosed established client to provide AI and automation services over a period of five years. The partnership has an estimated target spend of $2 billion. The announcement pushed up the company’s stock price up by 3.6% on the Bombay Stock Exchange (BSE).
“Infosys has entered into framework agreement with one of its existing strategic clients to provide AI and automation led development, modernisation and maintenance services. The total client target spend over 5 years is estimated at USD 2 billion,” the company said in an exchange filing on Monday. The news comes three days before July 20 when Infosys is scheduled to release the results of its June quarter (Q1FY24).
In accordance with the company’s exchange filing, the agreement includes the advancement, modernization, and upkeep of AI and automation-related services. Notably, the IT giant had recently unveiled a wide-ranging and cost-free AI certification training initiative through Infosys Springboard. This program aims to equip individuals with skills required to thrive in the future job landscape.
Infosys’ AI move underscores the growing trend of Indian IT companies increasing their investments in the field of AI. Long before OpenAI’s ChatGPT hit the scene, Tech Mahindra was already working with generative AI. Notably, the IT behemoth’s chief executive, CP Gurnani, lauded the Storicool platform—an auto content creation tool that proved ahead of its time.
In line with this trajectory, Tata Consultancy Services (TCS) made headlines with its own foray into generative AI capabilities, joining forces with Google Cloud. Furthermore, Wipro, too, has entered a partnership with Google Cloud to harness the power of its generative AI tools, integrating them with their in-house AI models, business accelerators, and pre-built industry solutions, as per the company’s announcement. This signifies a competitive shift within the Indian IT landscape.
Read more: How Indian IT Giants are Bringing GenAI to Their Clients
