Infosys has signed a $2bn deal with an existing client to deliver artificial intelligence and automation services over the next five years. The client hasn’t been named but the deal is likely to involve Infosys’s recently launched Topaz generative AI platform.
Since the powerful chatbot ChatGPT was unveiled by Microsoft-backed OpenAI in November last year, the enterprise IT market has shifted to embrace generative AI. Companies like Microsoft, Google and Salesforce have integrated the technology into their product ranges, while businesses are starting to grapple with how to use AI effectively without putting data at risk.
The new Infosys deal, disclosed in a regulatory filing in India, suggests there is merit in the investment being made by Big Tech companies. It hasn’t named the client, but across industry, there appears to be a growing demand for enterprise-grade AI solutions. The enterprise AI market is expected to hit a revenue of $155.2bn at a 34.60% CAGR by 2030, according to a report by Market Research Future.
Few details of the contract have been released as it is expected that Infosys will publish more information as part of its earnings call on Thursday. The Indian ITSP says the deal includes digital transformation, AI, automation-led development, modernisation and maintenance services.
The information came out through a securities exchange notice, describing it as a “framework agreement” with a target spend over five years estimated to be at $2bn. It would be the third major deal of the year after the service provider signed contracts with BP for $1.5bn and Danske Bank for $454m.
Growing ITSP AI market
IT service providers (ITSPs) such as Infosys have rushed to engage with AI, with companies like Wipro and TCS 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.
Last week, Wipro announced a major investment in generative AI, including an estimated $1bn spend on the technology over the next three years. The consultancy will focus on boosting AI in cloud services and training its 250,000-strong workforce over the next 12 months.
The company says it will focus on big data, expanding enterprise use of generative AI, analytics and building a new research and development platform. It has also launched a new AI-first innovation ecosystem called Wipro ai360, which will be used to train its workforce.
“Artificial Intelligence is a fast-moving field,” said Thierry Delaporte, Wipro CEO. “Especially with the emergence of generative AI, we expect a fundamental shift up ahead, for all industries. New business models, new ways of working, and new challenges, too.”
Meanwhile, Tata Consulting Services says it already has 50,000 AI-trained associates and half of those will be 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 and Azure tools to enterprise clients. This, according to TCS, will allow companies to launch new business models, grow revenue and enhance productivity.
“Generative AI upends how enterprises can grow revenue, create new innovations, and get more work done — it’s a game-changer that has the potential to do all of this faster, better, and more cost-effectively,” said Siva Ganesan, head of the TCS Microsoft business unit.