Days before its earnings call, Infosys announces $2B in new business

Results were anticipated to be dim, so where does this put outsourcer now?

IT outsourcer Infosys has signed a five-year $2 billion AI and automation deal with an unnamed existing client just three days before it releases its Q1 2024 earnings, a report that experts have predicted would be dismal.

The deal, announced in a BSE stock exchange filing [PDF], includes development, modernization and maintenance services.

In its Q4 2023 report, CEO Salil Parekh said the company was leveraging generative AI capabilities both for clients and internally.

"We anticipate generative AI to provide more opportunities for work with our clients, and to enable us to improve our productivity," said Parekh.

The earnings call reported attrition at over 20 percent, a rate that stood at 17.4 percent the previous year. It also revealed the company sat at an 80 percent utilization rate, which CFO Nilanjan Roy called "probably one of the lowest I've seen."

The company did report positive revenue growth for the quarter of 11.7 percent year-on-year, taking the figure up to $18.2 billion.

JP Morgan predicted in June that things would not get better for any of India's major outsourcers, Infosys included, as demand for IT services was likely to weaken.

The financial biz went as far as to call the entire 2024 financial year a "washout" for the industry. It cut its outlook for Infosys by 1-2 percent over FY24–26.

Infosys has also seen its head of HR and chief information security officer depart in recent days. The company's former CEO, Mohit Joshi, left in March.

Furthermore, the company is rumored to have deferred pay reviews and rises for employees below senior management level, allegedly with no update as to when they will resume.

Infosys's Q1 2024 results, which run through to June 30, are scheduled [PDF] to be released on July 20. ®

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