Infosys Ltd has signed a £1.2 billion ($1.6 billion or Rs. 14,000 crore) contract with the National Health Service Business Services Authority (NHSBSA) to overhaul its workforce management platform.
The 15-year contract is one of the largest technology deals in the UK public sector in recent years. In this agreement, Infosys will design and deploy a next-generation, data-driven workforce management system to substitute the current Electronic Staff Record (ESR) system.
The new platform will process payroll for 1.9 million NHS employees in England and Wales and manage the annual payroll processing of over 55 billion. Infosys stated that the initiative will utilize artificial intelligence features within its Topaz suite to improve operational efficiency and data integration across the NHS workforce systems.
The initiative also supports the NHS's broader goal of modernizing its digital systems and enhancing staffing management procedures.
The contract marks a reversal in Infosys' acquisition of large deals after a two-year pause. Its most recent mega-deal was a 1.64 billion deal with Liberty Global in 2023, and its largest to date was the 3.2 billion deal with Daimler in 2020.
The NHSBSA project is Infosys's fourth-largest project under CEO Salil Parekh and is expected to contribute an annual revenue of approximately $107million - $150 million until 2040. Analysts project that the deal will contribute approximately 0.6% to Infosys' incremental revenue in FY26.
This growth occurs amid economic pressures and sluggish deal closures that are being experienced in the global Indian information technology industry. In the case of Infosys, the contract not only improves its position in the healthcare and public sector segments but also improves its competitive position with other rivals (Cognizant, Wipro, and Tata Consultancy Services) around the world.
The improved performance over the last few quarters has positioned the company to compete for more long-term transformation deals.
Furthermore, the deal with NHSBSA points to an increasing trust in Indian IT companies as strategic technology partners for the digital transformation of the public sector.
The project, according to Phil Fersht, CEO of HFS Research, is one of the largest digital workforce programs in the UK, with a focus on replacing the system with an innovation-based re-architecture. The transaction is indicative of a larger trend in the industry, where customers are seeking resilience, automation, and data intelligence, rather than merely cost efficiency.
Infosys shares closed 0.2% lower at Rs. 1,489.9 following the announcement, in line with a marginal decline in the broader Nifty 50 index. The company will announce its quarterly earnings on October 16.
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