 "Infosys signs 5-year deal with Liberty Global estimated at $1.64 bn")
Information technology major Infosys and Liberty Global, a London-based telecom firm, signed a €1.5 billion (about $1.64 billion) deal for five years to evolve and scale up the telco's digital entertainment and connectivity platforms, the companies said in a joint statement on Tuesday.
As part of the expanded collaboration agreement, the size of the contract will touch €2.3 billion (about $2.5 billion) if extended to 8 years.
The collaboration allows Liberty Global to realise run-rate savings of over €100 million (about $109 million) per annum, inclusive of other savings and technology investments, Infosys said in a statement.
The deal builds on an existing multi-year collaboration as part of which Infosys has supported Liberty Global's technology services platforms since February 2020. The companies will significantly expand the program, with Infosys taking over the “build and operations” of Liberty Global's Horizon entertainment and connectivity platforms.
The expanded collaboration aims to bring digital entertainment powered by artificial intelligence (AI) to Liberty Global’s customers worldwide, through Infosys’s Topaz offer. In addition, Liberty Global is licensing these platforms to Infosys so the digital services provider can offer best-in-class services to new operators and new markets outside the Liberty Global family.
This is the fourth mega-deal for Infosys this financial year. In May, it won a deal worth $1.5 billion with British oil and gas company bp, followed by a second deal worth $454 million with Danske Bank in June. Last month, Infosys announced a $2 billion deal with an existing strategic client.
Liberty Global will continue to control product roadmaps and retain all intellectual property for the Horizon entertainment and connectivity platforms. As part of the expanded collaboration, more than 400 Liberty Global employees will be joining Infosys. Senior executives and technology teams from Liberty Global's Product, Technology Development Service Delivery Group, Network & Shared Operations, and Security Groups will transition to Infosys.
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“We are excited to bring Infosys Topaz to enable transformative AI-first capabilities to complement the cloud-first digital foundation we have laid for Liberty Global using Infosys Cobalt. This will unveil a new chapter in our joint journey of innovation as we reimagine entertainment and the connectivity experience for millions of global consumers. The strength of our global operations will also help the business scale across markets,” said Salil Parekh, chief executive officer (CEO) and managing director, Infosys.
Parekh, during the first quarter earnings said, Infosys was seeing an uptick in AI-led deals. “My sense is Generative AI is going to transform everything that is happening within our portfolio. And Topaz, being the leading platform or set of capabilities for Generative AI, I think it will make a huge impact. Having 80 active projects is a massive step and it is moving with rapid speed,” Parekh said.
“Strengthening and expanding our collaboration with Infosys gives our best-in-class solutions new scale with the ability to reach many more markets and bring positive experiences to more customers. And while it produces substantial central cost savings over time, it also provides excellent opportunities for our talent to grow their specialist skills and nurture impactful careers with Infosys,” said Mike Fries, CEO, Liberty Global.