Mphasis issued a clarification regarding a recent news report that claimed the IT services firm is set to lose business from FedEx, one of its significant clients.
According to a Mint report on June 1, FedEx is set to terminate its long-standing business relationship with Mphasis, reportedly accounting for 8% of the Bengaluru-based firm’s revenue. The report claims FedEx has selected Accenture to handle much of its IT work going forward.
Mphasis clarifies: ‘Continue to be service provider within FedEx ecosystem’
In response, Mphasis stated that it continues to be a service provider within the FedEx ecosystem. “For the sake of clarity, Mphasis continues to be a service provider in the FedEx ecosystem. Other aspects of the article are purely speculative,” the company noted in an official statement.
Mphasis further reiterated its previously communicated business outlook, as shared in its investor interactions and the most recent earnings call. The company emphasized, “We adhere to the highest standards of governance and disclosures, and any material information requiring disclosures under the applicable regulatory requirements will be promptly communicated to the stock exchanges.”
Mint reports FedEx ending ties with Mphasis
In the article, Mint, citing unnamed sources, states that the transition period is expected to last ten months, with the business arrangement with FedEx concluding by the end of 2025. In FY2024, FedEx reportedly contributed $130 million to Mphasis’s total revenue of $1.61 billion, with quarterly contributions peaking at $35 million.
The report further suggested that the loss presents a fresh challenge for CEO Nitin Rakesh, as the company navigates an already tough economic landscape.