Infosys Ltd shares will come under scrutiny on Tuesday morning after the IT major announced that a worldwide corporation has chosen to terminate the Memorandum of Understanding inked in September 2023 and that the parties would not pursue the Master Agreement.
In a BSE filing on September 14, Infosys indicated that it has entered into a Memorandum of Understanding with a worldwide corporation to provide enhanced digital experiences, as well as modernisation and business operations services, utilizing Infosys platforms and AI technologies.
Subject to parties signing into a Master Agreement, the total client target spend over 15 years was estimated at $1.5 billion.
"This is in continuation of the disclosure made by Infosys in a letter dated September 14, 2023 regarding a Memorandum of Understanding with a global company that was contingent on parties entering into a Master Agreement." "The global company has now elected to terminate the Memorandum of Understanding, and the parties will not pursue the Master Agreement," Infosys said in a statement to stock exchanges.
So far in 2023, Infosys shares are up 2.4% vs a 16.25% advance in the BSE Sensex. Kotak Institutional Equities recently noted that IT services firms faced a difficult demand environment in FY2024 due to reluctance to commit to new programmes in the face of high economic uncertainty, reprioritization of spending away from Covid-era priorities towards efficiencies and optimisation, excess in-house hiring, and longer sales and ramp-up cycles in mega deals.
Subject to parties signing into a Master Agreement, the total client target spend over 15 years was estimated at $1.5 billion.
"This is in continuation of the disclosure made by Infosys in a letter dated September 14, 2023 regarding a Memorandum of Understanding with a global company that was contingent on parties entering into a Master Agreement." "The global company has now elected to terminate the Memorandum of Understanding, and the parties will not pursue the Master Agreement," Infosys said in a statement to stock exchanges.
So far in 2023, Infosys shares are up 2.4% vs a 16.25% advance in the BSE Sensex. Kotak Institutional Equities recently noted that IT services firms faced a difficult demand environment in FY2024 due to reluctance to commit to new programmes in the face of high economic uncertainty, reprioritization of spending away from Covid-era priorities towards efficiencies and optimisation, excess in-house hiring, and longer sales and ramp-up cycles in mega deals.
