Infosys Wins $100 Million Ikea Deal

Infosys Wins $100 Million Ikea Deal

Infosys Wins $100 Million Ikea Deal

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Indian IT giant secures multi-year contract, impacting 350 roles across seven countries

June 18, 2024 — Infosys has clinched a significant $100 million (Rs 850 crore) deal with Swedish retailer Ikea, surpassing competitors such as HCL, Capgemini, and DXC. The contract will see around 350 Ikea employees across China, France, Germany, India, Poland, Sweden, and the US transition to Infosys. This deal marks a substantial expansion of Infosys’s presence in the retail sector.

The five-year agreement involves Infosys providing service desk, ServiceNow-based enterprise service management, and IT services management for 170,000 employees and 260,000 devices across 19 languages. The initiative is expected to streamline operations and enhance the delivery of digital tools and services to Ikea’s workforce.

Karmesh Vaswani, EVP and global head of consumer, retail, and logistics at Infosys, led the deal. “This partnership, which began with cold calls and initial connections, has evolved into a strategic collaboration over three years,” an internal email from Infosys revealed. The company is committed to delivering a transformation roadmap with 36 projects under this partnership, emphasizing a shared risk and reward approach.

Parag Parekh, chief digital officer at Ingka Group, stated, “After careful evaluation, we identified opportunities to improve our digital service delivery with speed, scale, and flexibility. Partnering with Infosys will enhance our core business functions and streamline operations.”

This agreement follows Infosys’s successful acquisition of a $454-million contract from Danske Bank last year, further establishing its footprint in the Nordics. As part of that deal, Infosys also took over Danske Bank’s IT center in India, employing 1,400 professionals.

Phil Fersht, CEO of HfS Research, noted Infosys’s growing reputation in Europe, highlighting its successful partnerships with major clients like Vanguard, Daimler, Danske Bank, and ABN Amro. “Infosys has a strong account team across Europe and effectively leverages onshore and Indian resources. The Nordics and continental Europe are now among their strongest markets,” Fersht said.

The recent Ikea contract underscores Infosys’s strategic growth in the European market, with the company poised to enhance digital operations for one of the world’s largest retailers.

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