Infosys inks deal worth $454 million with Denmark’s Danske Bank

India’s leading IT consultancy Infosys has signed a deal with Danske Bank worth $454 million under which the tech giant will provide IT support to the Nordic bank and will also buy its support centre in India which employs 1,400 people.

As per a press statement, the deal is for a period of five years, which can be extended for another year a maximum of three times. The transactions are expected to be completed by the second quarter of the next financial year, subject to customary closing conditions.

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The bank is aiming to leverage Infosys’ technical expertise to enhance customer experiences, operational excellence, and achieve a modernized technology landscape, which would be powered by next-gen solutions, including artificial intelligence, Infosys noted in a statement. The IT giant’s AI solutions will be powered by Infosys Topaz, an AI-first set of services, solutions and platforms, experience design and services that support operations.

“We have a strong starting point, and we want to further accelerate our digital and technology transformation. Infosys has the tools, experience, and expertise to support us in accelerating our transformation using cloud and AI technologies. Given Infosys’ global presence and scale, this collaboration will also give us access to wider talent pools and capabilities,” Frans Woelders, Chief Operating Officer, Danske Bank, said.

Indian IT service providers are turning to the European market in response to the economic slowdown globally. Infosys bagged over 25 per cent of its revenue in FY23 from the region, where it is competing with other leading companies like TCS, which last week signed a $1.1 billion deal with Nest, UK's largest workplace pension scheme.