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Infosys sees most large deals in $100-$250 million spot

IT services provider Infosys expects a majority of large deals to be in the $100-$250 million range going forward, even as it chases very large deals, such as the contract for modernising the operations of US financial services major Vanguard.

In July, the Bengaluru-based company won a large deal from Vanguard to modernise its corporate retirement plan unit. While the company did not disclose the size of the deal, it is reportedly worth nearly $1.5 billion.

Infosys said there were only a few Vanguard-like deals in the market.

“We are seeing an increasing interest in Vanguard kind of deals. We are seeing this across multiple segments. These deals are (however) pretty complex, and take a long time, it also involves proactive shaping. While we may see a few more deals of this kind, a significant percentage of our large deals will continue to be between $100-$250 million,” chief operating officer Pravin Rao told analysts in a call on Wednesday.

As part of the Vanguard deal, Infosys will take over the operations of its direct contribution business, record-keeping business, including software platforms, administration, and associated processes, and shift the assets to the cloud and use artificial intelligence processes to improve productivity of the unit.

Infosys will also absorb 1,300 American employees of the US investment management firm.

Rao pointed out that very large deals such as Vanguard also involve co-creating some solutions for the client.

There has been a surge in demand for modernisation work from across sectors as services are being shifted online, he said.

Analysts said Infosys’ management commentary was promising and that the company was confident of returning to pre-Covid-19 growth levels.

Infosys is seeing increased investment in Cloud migration.

“Infosys sees cloud (hybrid, multi and poly cloud) as a $500 billion enterprise investment opportunity and expects this to drive massive market opportunity in

the migration and maintenance space,” brokerage Motilal Oswal said in a recent report.

Infosys has launched Cobalt, the first cloud brand in the IT Services market. It currently has 35,000 associates working in this space and more than 200 solutions on Cobalt, the brokerage firm added. Business Journal

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