On December 23, Infosys announced that the multinational corporation, which had initially agreed to a $1.5 billion agreement centered on artificial intelligence solutions, had decided to terminate the Memorandum of Understanding (MoU) with the IT services major.
This development, originally planned as a 15-year agreement to be concluded in September 2023, highlights increased uncertainty in the demand and technology budgets of clients in the IT services sector.
"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 has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement," Infosys said in a statement. This comes less than two weeks after the company's former CFO, Nilanjan Roy, abruptly resigned.
On September 14, India's second largest IT services provider signed an agreement 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 worked with the previously mentioned worldwide company 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 per share, while the benchmark Sensex rose 0.34 percent to 71,106.96.
