3,000 Infosys employees to be redeployed post RBS contract loss
BT Online August 15, 2016
IT firm Infosys is set to take a hit after the Royal Bank of Scotland said it has cancelled its plan to separate and list a new standalone bank, Williams & Glyn (W&G), and instead will pursue other options for the divestment of this business.
The bank had awarded a five-year 300 million Euro IT contract to Infosys and IBM for W&G.
The move is likely to hit 3,000 Infosys employees and impact revenues for the year by about $40 million to $50 million, media reports said.
In 2013, Infosys won the contract to develop applications for W&G, a bank planned to be set up in the UK.
"Infosys has been a W&G program technology partner for Consulting, Application Delivery and Testing services, and subsequent to this decision, will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months," Infosys said in a statement.
"RBS is a key relationship for Infosys and the company looks forward to further strengthening our strategic partnership and working with them across other strategic and transformation programmes," the Indian IT firm added.