Infosys ends mega-deal drought with $1.6 bn UK contract
Infosys Ltd has signed a $1.6 billion contract with the National Health Service, the UK’s public healthcare provider, in the first major deal in two years and the fourth largest deal under chief executive officer (CEO) Salil Parekh.
The country’s second-largest information technology (IT) services company will manage the NHS Business Services Authority’s back-end IT infrastructure for 15 years, according to the company’s stock exchange filings.
The deal is expected to bring Infosys more than $107 million in revenue each year through 2040. For now, this means a guaranteed revenue increase of 0.6% in FY26, assuming the company does not experience any job losses. Infosys closed FY25 with revenues of $19.28 billion.
To put this in perspective, the total value of the deal is more than $1.4 billion or 6.8% of Infosys’ full-year revenue from the healthcare and life sciences sector in FY25.
The deal ends the Bengaluru-based software service provider’s drought in mega deals, or contracts worth over $1 billion. Infosys last won a major deal two years ago when it signed a five-year contract worth $1.64 billion with Liberty Global. It was stated that the contract could be extended for another three years to 2.5 billion dollars. Infosys’ largest contract to date was a $3.2 billion deal with German auto giant Daimler in December 2020, spanning eight years.
This also marks a win for CEO Parekh at a time when the company is outperforming its peers. Infosys outperformed its larger rival Tata Consultancy Services Ltd and smaller rivals HCL Technologies Ltd and Wipro Ltd in the first quarter. Six brokerage firms expect Infosys to outperform its rivals in the current July-September period. Infosys will announce its earnings on Thursday.
This mega deal also includes Infosys’ Cognizant Technology Solutions Corp. It will help to close the gap even further. Listed on Nasdaq at the end of June 2025, Cognizant was $304 million ahead of Infosys.
“Infosys will develop a cutting-edge, data-driven workforce management solution that will replace the current Electronic Personnel Record (ESR) system and continue to pay over £55 billion a year in payroll to 1.9 million NHS workers in England and Wales,” the company said in a press release submitted to the stock exchanges on Tuesday.
“Valued at £1.2bn, this is one of the largest public sector technology partnerships of the decade,” said Phil Fersht, chief executive of HFS Research.
“This signals growing confidence in Indian IT professionals as long-term transformation partners trusted to deliver mission-critical systems on a national scale,” Fersht said. “This is also a reminder that the next phase of outsourcing is about talent, resilience and innovation, not cost arbitrage.”
After a period of uncertainty, big offers are pouring in for India’s largest IT outsourcing providers. Infosys has become the fourth largest domestic IT outsourcing provider to sign a major deal since the beginning of the year.
On September 2, Tata Consultancy Services Ltd received a $640 million IT modernization contract from Scandinavian insurer Tryg.
Intercity peer Wipro Ltd was not far behind. The fourth-largest IT services company won a 10-year contract worth $650 million with UK-based insurer Phoenix Group in March this year.
Nasdaq-listed Cognizant Technology Solutions Corp also announced two mega deals between April and June 2025. One was at a large healthcare company and the other was at a telecom company. Cognizant is an IT firm of Indian origin as nearly three-quarters of its employees are based in India.
Infosys CEO Parekh expressed optimism following the mega deal.
“Our extensive experience in delivering digital transformation and organizational change for global organizations combined with elements of our AI offering, Infosys Topaz, will deliver a platform that not only improves efficiency today but also empowers the NHS to carry its invaluable work into the future,” he said in a statement to the stock exchanges.
Infosys shares closed down 0.2 percent ₹Following the announcement of the deal, the benchmark Nifty 50 index fell to 1,489.8 on Tuesday, following a 0.3% decline.
