Liberty Global (LBTYA Quick QuoteLBTYA - Free Report) is collaborating with Infosys (INFY Quick QuoteINFY - Free Report) to enhance and expand LBTYA's digital entertainment and connectivity platforms. This includes Infosys taking over the build and operations of Liberty Global's Horizon entertainment and connectivity platforms.

Both parties have entered into an initial five-year agreement, with an option to extend to eight years and beyond. Infosys will provide services to Liberty Global estimated at 1.5 billion euro ($1.64 billion) over the initial five-year term and 2.3 billion euro if the contract is extended to eight years.

The collaboration aims to bring the scale and breadth of Infosys, including advanced technologies like Infosys Topaz AI offering, to ensure operational excellence, scalability and the development of new features and capabilities for Liberty Global.

This expansion builds upon the existing multi-year collaboration, which has been in place since February 2020 and has supported LBTYA's technology services platforms.

Under the terms of the business arrangements, LBTYA will license its platforms to Infosys, allowing INFY to offer services to new operators and markets beyond the Liberty Global family. This will potentially introduce millions of new customers worldwide to next-generation digital entertainment and connectivity services through the Horizon platform.

The collaboration is expected to enable Liberty Global to achieve run-rate savings of more than 100 million euro per annum, including other savings and technology investments.

Liberty Global Exhibits Bright Prospects Despite Stiff Competition

The company’s digital entertainment and connectivity platforms are technology ecosystems that offer a range of services to customers, primarily focused on providing entertainment content and seamless connectivity. These platforms aim to deliver an integrated and user-friendly experience for consumers, enabling them to access a variety of digital content and communication services.

Liberty Global's partnership with Infosys to enhance and scale these platforms underscores the company’s commitment to providing cutting-edge digital experiences to its customers.

In the second quarter of 2023, total revenues increased 5.3% year over year to $1.848 billion, driven by a year-over-year increase in revenues in Belgium, Switzerland and Ireland. The Zacks Consensus Estimate for 2023 revenues is pegged at $7.45 billion, indicating growth of 3.48% year over year.

Shares of this Zacks Rank #3 (Hold) company have declined 2.1% in the year-to-date period against the Consumer Discretionary sector’s return of 21.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LBTYA's success in a competitive market will depend on its ability to offer compelling content, innovative features, reliable connectivity and a user-friendly experience that resonates with its target audience.

Liberty Global’s businesses are expected to keep facing considerable competition from the likes of Comcast (CMCSA Quick QuoteCMCSA - Free Report) and Verizon Communications (VZ Quick QuoteVZ - Free Report) among others in the countries in which these companies operate.

Comcast-owned Xfinity, which provides broadband, cable TV, streaming and voice services, competes directly with Liberty Global's services in terms of offering entertainment and connectivity bundles.

Verizon Communications-owned FiOS platform offers fiber-optic-based broadband, TV and home phone services. It competes with LBTYA's offerings in terms of high-speed internet and entertainment bundles.

Liberty Global’s partnership, such as the expanded collaboration with Infosys, indicates the company’s commitment to enhancing its innovation and services.