Infosys signs $1.6 billion deal with Liberty Global to scale digital platforms

IT major Infosys and Liberty Global have recently announced a significant 5-year agreement valued at $1.64 billion, which will have the provision to get it extended for up to eight years and beyond. The collaboration aims to transform and expand Liberty Global's digital entertainment and connectivity platforms.  

This collaboration builds upon the existing successful partnership that began in February 2020, which has been supporting Liberty Global's technology services platforms. Infosys will now take over the construction and operation of Liberty Global's renowned Horizon entertainment and connectivity platforms. 

The Infosys- Liberty Global presents a remarkable opportunity for over 400 Liberty Global employees who will join Infosys. The move will include senior executives and technology teams from various divisions of Liberty Global, including product, technology development, service delivery, network, shared operations, and security. 

Chief Executive Officer Salil Parekh said, "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.” 

"The parties have entered into an initial five-year agreement, with an option to extend to 8 years and beyond. Infosys will provide services to Liberty Global estimated at €1.5 billion over the initial 5-year term and at €2.3 billion if the contract is extended to 8 years. The collaboration allows Liberty Global to realize run-rate savings in excess of €100 million per annum, inclusive of other savings and technology investments," a joint statement filled as a regulatory filing read. 

Moreover, Liberty Global would license all the platforms that are built under the deal to Infosys. This means the IT company can offer similar services to new operators and new markets.