NEW DELHI: The digital transformation activities of Danske Bank will be accelerated through a strategic relationship between the information technology services company Infosys and the bank.
Infosys is a multinational supplier of IT services with clients in more than 50 countries and more than 40 years of industry experience.
The contract has a five-year estimated value of USD 454 million and a three-time maximum option to renew for one extra year. In a regulatory filing, the IT firm stated that it will assist the lender in digitising its core business and expanding its cloud and data infrastructure. This included buying Danske Bank's Indian IT centre from Infosys.
With its headquarters in Denmark, Danske Bank offers banking services to small businesses, institutions, and individuals.
With this agreement, Infosys will purchase the 1,400-person IT centre that Danske Bank operates in India.
The contract between British pension plan Nest and Bengaluru-based Infosys came days after Mumbai-based bigger rival TCS signed a deal worth 840 million pounds with Nest.
After the news of the purchase, the company's shares, which has its headquarters in Bengaluru, barely changed. The stock has lost around 15% of its value so far this year, while remaining relatively stable.
On the other hand, the largest provider of IT services in the nation, TCS, revealed on Wednesday that it has signed a GBP 840 million deal with UK company Nest to improve the pension scheme's member experience.
According to a statement from Tata Consultancy Services, if the contract is extended for the full 18-year duration, its maximum projected value might reach GBP 1.5 billion.
The statement added that the two organisations have been cooperating since 2011, and the new deal, which is for ten years, expands their collaboration.
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