INFY

Bags $1.6 Billion Mega Deal with UK's NHS, Ending Two-Year Drought

secured a $1.6 billion contract with the National Health Service (NHS) Business Services Authority, the UK's public healthcare provider, marking the company's first mega deal (>$1 billion) in two years. → The 15-year contract is the fourth-largest deal under CEO Salil Parekh and is expected to fetch Infosys an average of over $107 million annually. → This single deal's total value is significantly larger than the $1.4 billion (or 6.8%) of its full-year revenue that Infosys received from its entire Healthcare and Life Sciences vertical in FY25. → Infosys will manage the NHS Business Services Authority's back-end IT infrastructure and is tasked with developing a cutting-edge, data-driven workforce management solution. → The new solution will replace the current Electronic Staff Record (ESR) system and continue to process the annual payroll of over £55 billion for 1.9 million NHS employees in England and Wales. → The deal, which includes elements of the company's AI offering, Infosys Topaz, will help Infosys further close the revenue gap with Nasdaq-listed Cognizant Technology Solutions. → This win comes as part of a trend of big-ticket deals pouring in for Indian IT outsourcers; Infosys is the fourth large homegrown firm to secure a mega deal since the start of the year. → The company is currently expected by six brokerages to outperform its rivals in the current July-September quarter (Q2), continuing its positive momentum against peers like TCS, HCL Technologies, and Wipro.