On December 23, Infosys said that the multinational corporation, which had initially agreed to a $1.5 billion agreement focusing on artificial intelligence solutions, had decided to terminate the Memorandum of Understanding (MoU) with the IT services major.Â
This development, originally planned as a 15-year deal to be finalized in September 2023, highlights increased uncertainty in the demand and technology budgets of clients in the IT services sector.
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“This is in continuation of the disclosure made by Infosys via letter dated September 14, 2023, titled ‘Company Update’ with respect to an MoU with a global company that was contingent on parties entering into a master agreement.” “The global company has now chosen to terminate the MoU, and the parties will not pursue the Master Agreement,” the company stated in an exchange filing on Saturday.
“The global company made the decision to terminate the Memorandum of Understanding and the parties are no longer seeking the Master Agreement,” the company stated in a statement.
This comes less than two weeks after the company’s former CFO, Nilanjan Roy, unexpectedly resigned.
On September 14, India’s second biggest IT services provider signed an agreement with an international organization “to provide enhanced digital experiences, as well as modernisation and operations for business services, leveraging Infosys platforms and AI solutions.”
Infosys had worked with the previously stated worldwide firm to deliver digital experiences using Infosys’ platform and AI technology.
On the BSE on Friday, Infosys’ shares rose 1.68 percent to Rs 1,562.00 a share, while the benchmark Sensex rose 0.34 percent to 71,106.96.
