Infosys multiplies UK public sector revenue by 160 with £1.2bn NHS deal

Infosys has been selected to deliver an HR system to the NHS in a 15-year, £1.2bn deal, which increases the supplier’s UK public sector business more than 160 times over.

Before signing the £1.2bn deal to provide what is described as an integrated HR and payroll system across the NHS, Infosys had just £7.45m in active UK public sector contracts.

According to figures from Tussell, the Indian IT giant has only won 36 contracts since 2012, to a total value of £87.2m.

The NHS contract, previously held by IBM, was put out to tender in 2022 by government arms-length body NHS Business Services Authority (NHSBSA) for the supply of an integrated NHS HR and payroll system.

The system, known as Future NHS Workforce Solution, will be used across the health service in England and Wales. It will include an integrated workforce management solution that covers payroll, HR, learning and talent management.

The current electronic staff record (ESR) is based on Oracle’s e-business suite.

Infosys said the new service will use artificial intelligence (AI) tools in Infosys Topaz to streamline workforce planning, use data to make decisions and offer a more user-friendly interface.

By working with Infosys, we’re creating a modern, data-driven solution that will help the NHS better attract, retain and support its people

Michael Brodie, CEO of NHSBSA, said the Future NHS Workforce Solution was a critical step in supporting the health service’s 10-year plan. “The solution will go far beyond simply replacing ESR – it will be a strategic enabler for building a workforce that is fit for the future. By working with Infosys, we’re creating a modern, data-driven solution that will help the NHS better attract, retain and support its people.”

This is a huge win for Infosys and a sign that the UK public sector is opening up to IT services firms headquartered in India. According to specialist IT outsourcing lawyer Mark Lewis, this is a big step up for Infosys in the UK public sector.

While companies such as Infosys, Tata Consultancy Services (TCS) and Wipro have won sizeable deals in the UK private sector, business in the huge public sector has been comparatively small.

But this is changing.

Speaking to Computer Weekly about TCS’s UK public sector plans last year, Amit Kapur, its UK country head, said there was “potential, paucity and action” with “good engagement”.

Lewis said: “There has been a trend for some time, particularly since Brexit, where the UK has been looking for alternative IT service providers,” he said. “We have seen the rise of TCS in the public sector, and we are beginning to see a growing number of other Indian suppliers winning contracts.”

He added that the increased focus on such firms in the public sector reflected the trading relationship between the UK and India.

Infosys CEO Salil Parekh said: “The NHS is a cornerstone of life in the UK, providing vital services that touch the lives of millions every day. We are honoured to be chosen by the NHSBSA to deliver generational change for employees of the NHS in England and Wales through the Future Workforce Solution.

“With our extensive experience in delivering digital transformation and organisational change for global entities, combined with elements of our AI offering – Infosys Topaz – we will deliver a platform that not only drives efficiency today, but empowers the NHS to elevate its invaluable work into the future.”