The large multi-year contract between Infosys and Vanguard is worth $1.5 billion. The deal was announced by Infosys, the country's second largest software exporter, a day before its quarterly earnings last week.
The contract with the US investment firm is also expected to span over 10 years and the deal value could further rise to more than $2 billion during the period, The Times of India reported citing unidentified sources. The deal is expected to be the largest that Infosys has ever signed, it suggested. In 2018, Infosys had entered into an agreement with Verizon whose worth got extended to $1 billion in 2019.
The Indian IT major will assist Vanguard's recordkeeping business, including software platforms, administration, and associated processes.Vanguard is also an investor in Infosys. Following the deal announcement, Infosys shares saw a substantial surge last week.
Shares of Infosys were trading at Rs 911.80, up 8.65 points, or 0.96 per cent on NSE at the time of reporting.
Meanwhile, Infosys last week reported 11.5 per cent growth in consolidated net profit (after minority interest) at Rs 4,233 crore for the first quarter ended June 30, 2020, as against Rs 3,798 crore in the same period last year. On a quarter-on-quarter basis, the profit fell 2 per cent from Rs 4,321 crore in the March quarter of FY20.
The IT major surprised the market by giving full year constant currency revenue growth guidance amid coronavirus pandemic. Infosys has forecasted 0-2 per cent revenue growth in constant currency terms for the current financial year, while the operating margin is expected to remain in the range of 21-23 per cent.Also read: 2,426 firms 'looted' Rs 1.47 lakh crore from banks; will govt investigate, asks Rahul Gandhi