Infosys achieves $454 million online transformation deal from Danske Bank
Monday, 26 June 2023, 12:42 IST
Infosys secured a digital transformation deal with Nordic-based Danske Bank valued at $454 million for a period of five years. The Bengaluru-based program exporter will also acquire the lender’s IT center in Bengaluru, which employs 1,400 people. The deal, which can be expanded for three more additional years, is to accelerate the Nordic-based bank’s digital transformation initiatives with scale. This partnership will help Danske Bank better its customer experiences and technology modernization.
This comes as TCS last week announced it had bagged a $1.9 billion deal from UK workplace pension scheme NEST to digitally transform its scheme administration services. Last month, Infosys won a $1.5 billion deal from global energy giant BP for a period of five years. The deal is the largest it has won in the last three years. Infosys will also take over the bank’s IT center in Bengaluru for 13.6 Danish Krone (or Rs 16.3 crore) as a part of the deal. This marks the first such acquisition of a global capability centre (GCC) since the Silicon Valley Bank crisis earlier this year.
The banking crisis in the US and Europe could provide Indian IT firms with an opportunity to acquire captives technology units of banking and financial firms in a repeat of the 2008 financial crisis. IT companies such as TCS, Infosys, Wipro and Cognizant had acquired parts of the captive businesses of banks, including Citi, ABN Amro, and UBS, after the 2008 crisis.
Infosys will accelerate the Danske Bank’s digital agenda by enhancing their IT operations and capabilities through Infosys Topaz– its AI-first set of services, solutions, and platforms. "Infosys will collaborate with Danske Bank to strengthen their core business with greater digital, cloud, and data capabilities. This will help Danske Bank create more value for their customers using powerful advances in Al, including generative Al,” said Infosys’ chief executive Salil Parekh.
HCLTech and Tata Consultancy Services are expected to kick off the results season on July 12. Indian IT firms are expected to report tepid first quarter results as the macro headwinds, tightening of discretionary spending and banking crisis in the US have hampered sentiments. India’s second-largest firm Infosys pegged a 4-7% revenue growth for FY24– its lowest in six years while its crosstown rival Wipro expects a 1-3% decline in revenue in the quarter-ended June.
This comes as TCS last week announced it had bagged a $1.9 billion deal from UK workplace pension scheme NEST to digitally transform its scheme administration services. Last month, Infosys won a $1.5 billion deal from global energy giant BP for a period of five years. The deal is the largest it has won in the last three years. Infosys will also take over the bank’s IT center in Bengaluru for 13.6 Danish Krone (or Rs 16.3 crore) as a part of the deal. This marks the first such acquisition of a global capability centre (GCC) since the Silicon Valley Bank crisis earlier this year.
The banking crisis in the US and Europe could provide Indian IT firms with an opportunity to acquire captives technology units of banking and financial firms in a repeat of the 2008 financial crisis. IT companies such as TCS, Infosys, Wipro and Cognizant had acquired parts of the captive businesses of banks, including Citi, ABN Amro, and UBS, after the 2008 crisis.
Infosys will accelerate the Danske Bank’s digital agenda by enhancing their IT operations and capabilities through Infosys Topaz– its AI-first set of services, solutions, and platforms. "Infosys will collaborate with Danske Bank to strengthen their core business with greater digital, cloud, and data capabilities. This will help Danske Bank create more value for their customers using powerful advances in Al, including generative Al,” said Infosys’ chief executive Salil Parekh.
HCLTech and Tata Consultancy Services are expected to kick off the results season on July 12. Indian IT firms are expected to report tepid first quarter results as the macro headwinds, tightening of discretionary spending and banking crisis in the US have hampered sentiments. India’s second-largest firm Infosys pegged a 4-7% revenue growth for FY24– its lowest in six years while its crosstown rival Wipro expects a 1-3% decline in revenue in the quarter-ended June.
