Zee Media Bureau
Bengaluru: Call it a Brexit impact or gloomy shadow of low interest rates in developed markets, the Royal Bank of Scotland (RBS) has cancelled a major contract that is likely to impact as many as 3,000 of Infosys' employees, and denting revenues by about $40 million over the next six months.
RBS was planning to float a separate standalone UK bank - Williams & Glyn (W&G) and had awarded a five-year 300-million euro IT contract to Infosys and IBM for W&G. Reportedly, the major portion of that may be as much as $200 million, was to go to Infosys.
On Saturday, following the RBS announcement, Infosys said in a statement: "Infosys has been a W&G programme technology partner for consulting, application delivery and testing services, and subsequent to this decision (of not creating a separate subsidiary), will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months."