Infosys, the Indian IT services company, has secured a massive €1.5 billion ($1.6 billion) deal from Liberty Global to build and scale the entertainment and connectivity platforms for the digital communications firm. This marks Infosys’ third major agreement this year. The initial tenure of the deal is five years, with the potential to extend it to eight, bringing the total value up to €2.3 billion ($2.5 billion).
Despite slashing its revenue guidance for the current financial year due to a challenging macroeconomic environment, Infosys expressed excitement about the deal. Infosys CEO Salil Parekh stated, 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. Topaz is a set of services, solutions, and platforms that focus on AI technologies.
As part of the agreement, Infosys will take over the build and operations of Liberty Global’s Horizon entertainment and connectivity platforms. Additionally, Liberty Global will license these platforms to Infosys, allowing the IT services provider to offer its services to new operators and markets. Liberty Global will retain control of product roadmaps and all intellectual property for the Horizon entertainment and connectivity platforms.
The deal is expected to result in run-rate savings of over €100 million per year for Liberty Global, encompassing both direct savings and technology investments. Furthermore, 400 employees from Liberty Global will join Infosys as part of the agreement. This transfer includes senior executives and technology teams from various departments within Liberty Global.
We look forward to building on the trust that Liberty Global has in us, said CEO Salil Parekh. He believes that the collaboration will lead to continued operational excellence, a scalable development engine for new features and capabilities, and overall efficiencies for Liberty Global.
This deal comes on the heels of other major wins for Infosys. The company recently secured a $1.5 billion deal from bp and a $454 million contract from Danske Bank. Its rival, HCLTech, also made waves in the industry by landing a $2.1 billion contract from Verizon last week.
With these major agreements, Infosys aims to solidify its position in the IT services market and expand its engineering capabilities.
