Infosys on December 23 revealed that the global company, which had initially entered into a $1.5 billion deal centered around artificial intelligence solutions, has opted to terminate the Memorandum of Understanding (MoU) with the IT services giant.
Originally slated as a 15-year agreement and finalised in September 2023, this development underscores growing uncertainty in the demand and technology budgets of clients in the IT services sector.
“This is in continuation to the disclosure made by Infosys vide letter dated Sept. 14, 2023, titled ‘Company Update’ with respect to an MoU with a global company which was subject to parties entering into a master agreement. The global company has now elected to terminate the MoU and the parties will not be pursuing the Master Agreement,” the company said in an exchange filing on Saturday.
“The global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement,” Infosys added.
This comes less than two weeks after Nilanjan Roy, the company’s former CFO, abruptly quit.
On September 14, India’s second largest IT services provider announced a memorandum of understanding with an international organisation “to provide enhanced digital experiences, as well as modernisation and business operations services, leveraging Infosys platforms and AI solutions.”
Infosys had collaborated with the aforementioned global company to provide digital experiences through the use of Infosys’ platform and AI technologies.
On Friday, Infosys’ shares surged 1.68 per cent to Rs 1,562.00 per share on the BSE, while the benchmark Sensex increased 0.34 per cent to 71,106.96.