Infosys bags $1.6 billion deal from Liberty Global, will add 400 new employees from the telecom company

Indian IT services company Infosys has won a €1.5-billion ($1.6 billion) deal from Liberty Global to build and scale the entertainment and connectivity platforms of the digital communications firm, the company announced in an exchange filing on Tuesday.

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.”

As per the current agreement between both parties, the initial tenure of the contract is five years. It can also be extended to eight years, which would take the deal value to €2.3 billion ($2.5 billion), the company said in the exchange filing.

The IT services company added that this deal will allow Liberty Global to realise run-rate savings in excess of €100 million per annum inclusive of other savings and technology investments.

The exchange filing read, “"By bringing the scale and breadth of Infosys, including cutting-edge technologies such as Infosys TopazTM AI offering, the expanded collaboration ensures continued operational excellence, a highly scalable development engine for new features and capabilities, and efficiencies for Liberty Global.”

Moreover, Liberty Global would licence 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.

Furthermore, 400 employees of Liberty Global will also join 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.

The IT company’s CEO added, “As we prepare to welcome new talent and teams of innovators to Infosys, we look forward to building on the trust that Liberty Global has in us.”

"They will benefit from global business exposure, scale, and wider career advancement opportunities. They will also play an important role in shaping the future of Infosys' communications, media and entertainment business and add significantly to its engineering capabilities," the company’s statement noted.