Infosys and its recent deal with Liberty Global. It also highlights the broader trend of IT firms focusing on the telecom business and mentions another deal by HCLTech in a related sector. Here’s a summary:
- Infosys Deal with Liberty Global: Infosys has secured a substantial €1.5 billion ($1.64 billion) deal from Liberty Global. The agreement involves building and expanding entertainment and connectivity platforms for the digital communications firm. The initial contract spans five years, with the potential for an extension to eight years, which could increase the total value of the deal to €2.3 billion ($2.5 billion).
- Growing IT Focus on Telecom Business: This deal signifies the growing interest of IT companies in the telecommunications sector. Infosys’s engagement with Liberty Global is an example of how IT firms are diversifying into telecom-related services.
- Infosys’s Recent Agreements: This deal with Liberty Global is the third major agreement secured by Infosys this year. Despite challenging macroeconomic conditions that prompted Infosys to revise its revenue guidance for the current fiscal year, the company has been successful in securing substantial deals.
- HCLTech’s Deal with Verizon and Cricket Australia: The report also mentions HCLTech’s $2.1-billion contract with Verizon, highlighting a similar trend of IT firms entering the telecom sector. Additionally, HCLTech has been chosen by Cricket Australia for the next phase of its digital transformation, further emphasizing this focus.
The collaboration between Liberty Global and Infosys, along with related developments in the IT and telecom sectors. Here’s a breakdown of the key points:
- Cost Savings and Transition: The collaboration between Liberty Global and Infosys is expected to result in significant cost savings for Liberty Global. The partnership is anticipated to generate run-rate savings of over €100 million ($109.32 million) per year, including various other savings and technology investments. As part of the deal, more than 400 employees from Liberty Global will move to Infosys.
- Technological Advancements: Infosys aims to leverage its AI-first capabilities, particularly through Infosys Topaz, to enhance Liberty Global’s digital foundation. This strategic move is aligned with Liberty Global’s cloud-first approach and aims to bring transformative AI-driven enhancements to the company’s operations.
- Industry Trends: The collaboration between IT companies like Infosys and telecom giants like Liberty Global reflects a broader trend of IT firms expanding into the telecom sector. This move allows IT companies to offer advanced technology solutions and services to telecom companies, contributing to the evolution of the telecommunications industry.
- Other Recent Deals: The provided information also mentions other notable deals in the telecom sector involving IT companies. For instance, a consortium led by Tata Consultancy Services (TCS) received a significant order from BSNL for the deployment of a 4G network across India. Additionally, L&T Technology Services secured a $50 million deal in the same vertical.
