Infosys, India’s second-largest IT service provider, has signed a $1.5bn deal for AI services with an unnamed “global company”. The contract covers the digital transformation of business operations and will see Infosys help the client fully integrate its AI services.
The new agreement covers a 15-year span, with Infosys’ $1.5bn spend spread out over that period. Few specific details have been shared of the contract, which was revealed through an exchange filing in India, and is contingent on the two companies entering a master agreement.
This latest announcement is just the latest in a long run of mega deals for Infosys, including a $1.64bn contract with Europe-based Liberty Global, owners of Virgin Media in the UK. That deal builds on an existing arrangement between the two companies and will see Infosys build out Liberty Global’s Horizon entertainment and connectivity platform over the next five years.
Today’s new AI deal also follows an earlier $2bn agreement between the IT service provider and an existing client to deliver AI and automation services over five years. This also included integration with its Topaz generative AI platform. Revealed in July, the earlier deal also only came to light due to a regulatory filing in India, though with few details volunteered by Infosys.
The Indian provider also won a $1.5bn deal to modernise BP’s digital application landscape earlier this year. It will see Infosys build out end-to-end application services for management, development, modernisation and maintenance.
Enterprise demand for AI beyond Infosys
A growing demand has been registered across multiple sectors for enterprise-grade AI solutions, with the IT service providers competing with Big Tech giants like IBM, Microsoft and Google to dominate the space. The enterprise AI market is expected to hit a revenue of $155.2bn at a CAGR of 34.60% by 2030, according to a report by Market Research Future.
It comes as a new survey by Workday revealed that the majority of executives were optimistic about the potential impact of AI, with 73% of respondents feeling that it would impact the global business landscape in the short term. Many, too, were concerned about trusting AI systems and the transparency of their operation, factors that will likely influence the delivery of further AI packages by IT service providers.
IT service providers such as Infosys have rushed to engage with AI, making multi-billion dollar bets on staff AI training or launching new platforms to offer AI services from Google, Microsoft and others to their clients. Many consultancy organisations, including EY and Deloitte, are also embracing AI.
TCS, for example, says it already has 50,000 AI-trained associates, with half of those trained specifically on the OpenAI products through Azure with full certification. The company has also launched a new Generative AI Enterprise Adoption product that uses its own proprietary transformation framework to bring contextual knowledge. EY, meanwhile, has said that it is investing in fully integrating AI throughout its business.
Read more: EY invests $1.4bn in new AI platform and training
