Ikea selects Infosys for IT services in a $100 million deal

Infosys won a $100 million contract from Swedish furniture retailer Ikea, beating out smaller regional companies and incumbents HCL, Capgemini, and DXC.

Infosys will provide IT services management, enterprise service management using ServiceNow, and a service desk for 170,000 employees and 260,000 devices in 19 languages for five years.

Around 350 Ikea jobs in China, France, Germany, India, Poland, Sweden, and the US will be affected, with the employees moving to Infosys.

Infosys emailed certain employees, stating that the three-year journey had been successful. It started with cold calling and early contacts and ended with a strategic alliance.

The transaction was closed under the direction of Infosys' EVP and global head of consumer, retail, and logistics, Karmesh Vaswani. They mentioned in the email that they planned to adopt a partnership strategy. This strategy involves sharing risks and rewards and implementing 36 transformation projects.

Chief digital officer of the Ingka Group, Parag Parekh, claimed that after reviewing their current procedures, they have discovered ways to increase the flexibility and speed of providing digital tools and services to colleagues. He claimed that by collaborating with Infosys, they would enhance their core business procedures and optimize operations.

Infosys is expanding into the Nordic region. Danske Bank awarded Infosys a $454 million deal last year. The agreement will take effect for a duration of five years, with three more one-year extensions conceivable. According to the report, Infosys would also purchase Danske Bank's 1,400-person IT facility in India as part of this transaction.