Infosys, India’s No.2 IT services provider, signed a $454-million contract with Denmark’s Danske Bank on Monday at a time the broader sector is struggling with a slowdown in an uncertain global economy.

The IT company will help digitize the lender’s core business and add more cloud and data facilities to it, including Infosys acquiring Danske Bank’s IT centre in India, it said in a regulatory filing. The IT centre employs 1400 digitally skilled professionals.

“Danske Bank, a leading Nordic bank, has selected Infosys as a strategic partner to accelerate the bank’s digital transformation initiatives with speed and scale. This collaboration will help Danske Bank achieve its strategic priorities towards better customer experiences, operational excellence, and a modernised technology landscape, powered by next-gen solutions,” Infosys said in a regulatory filing.

Danske Bank provides banking services to personal and business customers, as well as large corporate and institutional clients.

Infosys pointed out that Nordics is a strategic market and the collaboration would further enhance its commitment to the region.

“The estimated deal value is $454 million for 5 years with an option to renew for one additional year for a maximum of three times,” Infosys disclosed.

The Bangalore-based IT services firm added that it will acquire a 100 per cent stake in Danske Bank’s IT centre in India in an all-cash deal for about Rs 16 crore.

“We expect the transactions to be completed before the second quarter of the financial year 2024, subject to customary closing conditions,” Infosys said.

Infosys’ contract comes days after Mumbai-based bigger rival TCS signed a deal worth £840 million with British pension scheme Nest, for a starting tenure of 10 years.

Still, at least one analyst said the contracts might not be enough to turn the tide for the industry.

“Despite a strengthened order pipeline, the effects of this deal might be offset by macro factors such as inflation and increased labour costs,” Akshara Bassi, an analyst at Counterpoint Research, said on the Danske Bank deal.

Shares of Infosys were little changed after the deal announcement. The stock is down about 15 per cent so far this year, compared with a little-changed Nifty IT index.

Infosys MD & CEO Salil Parekh said: “Infosys will collaborate with Danske Bank to strengthen their core business with greater digital, cloud and data capabilities. This will help Danske Bank create more value for their customers using powerful advances in AI, including generative AI,” he noted. With inputs from Reuters