Infosys wins $100 million Ikea deal

BENGALURU: Infosys has won an over $100 million (Rs 850 crore) deal from Swedish retailer Ikea, outpacing incumbents HCL, Capgemini and DXC, and other regional players. About 350 roles at Ikea will be impacted across China, France, Germany, India, Poland, Sweden, and the US, and these employees will transition to Infosys. "It has been a three-year long but fulfilling journey that started with cold calling and some initial connections and culminated in a strategic partnership," an email sent by Infosys to select employees showed.
The five-year contract 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 deal was clinched under the aegis of Karmesh Vaswani, EVP and global head of consumer, retail and logistics, at Infosys. "We are also taking the partnership approach, taking the next level of sharing risks and rewards and delivering a transformation roadmap with 36 transformation projects committed to be delivered as part of this partnership," the email showed.
Parag Parekh, chief digital officer at Ingka Group, said, "After careful consideration and evaluation of our current operations, Ingka Group has identified opportunities to improve the delivery of digital tools and services to co-workers with speed, scale, and flexibility. By partnering with Infosys, we will enhance our core business functions and further streamline operations."
Infosys is growing its presence in the Nordics. Last year, Infosys bagged a $454-million contract from Danske Bank. The deal is to be executed over five years, with an option to renew the contract for one additional year for a maximum of three times. As part of this, Infosys will also acquire Danske Bank's IT centre in India that employs 1,400 professionals. Phil Fersht, CEO of HfS Research, said Infosys has been quietly developing a strong reputation in Europe with flagship clients like Vanguard, Daimler, Danske Bank, ABN Amro, and many more. "They have a strong account team across the main European countries and proven delivery that leverages onshore and Indian resources effectively. I see continental Europe and the Nordics as one of their biggest strengths in today’s market," he said.