Infosys to power Spark’s AI and digital transformation under expanded tech delivery deal

Why are Spark and Infosys expanding their collaboration?

Spark New Zealand and Infosys have entered into a new phase of collaboration aimed at transforming Spark’s technology delivery model. Announced on April 16, 2025, this strategic agreement builds on a partnership that has spanned more than 16 years, formalising a deeper integration of Infosys’s digital, AI, and DevOps capabilities into Spark’s technology stack. The move aligns with Spark’s broader strategy to deliver cost-efficient, AI-driven customer experiences while retaining local control over its IT assets and strategic technology decisions.

The initiative is framed as a key pillar within Spark’s “Operate” programme, a long-term operational efficiency strategy focused on reducing IT operating costs, improving service agility, and modernising internal systems without compromising customer service quality. Infosys, in turn, is committing to expand its presence in New Zealand by boosting local talent, signalling a hybrid support model that combines global scalability with regional specificity.

How will Infosys’s Topaz and Cobalt platforms support Spark’s transformation?

At the heart of the collaboration is the deployment of Infosys Topaz and Infosys Cobalt—two of the company’s flagship technology platforms. Topaz is an AI-first suite of services, platforms, and solutions built to scale generative AI across enterprises, while Cobalt provides an integrated cloud platform enabling faster digital migration and operational agility.

Together, these platforms will be used to overhaul Spark’s application development and maintenance landscape. Infosys will deploy global DevOps and software engineering talent to manage the build, integration, testing, and deployment of Spark’s IT systems. This approach is designed to create a more modular, flexible technology architecture capable of rapid iteration, a crucial capability as Spark increasingly shifts focus to customer-centric innovation powered by AI and data analytics.

Rather than outsourcing core intellectual property or ceding strategic control, Spark will retain oversight of its technology architecture, product design roadmap, and business-critical applications. The partnership instead provides a delivery engine that complements Spark’s internal teams, freeing them to focus on long-term innovation while outsourcing operational execution at scale to Infosys.

What are the cost and operational implications of the partnership?

The agreement is expected to result in measurable reductions in Spark’s IT operating costs, particularly as it seeks to scale digital services and introduce automation into its customer service and backend processes. Cost savings are anticipated through improved delivery velocity, reduced duplication, enhanced monitoring, and global delivery synergies.

Infosys’s global engineering scale will allow Spark to shift from a traditional, resource-intensive IT model to a cloud-native, platform-based architecture. The use of generative AI through Infosys Topaz is also expected to optimise workload orchestration, automate repetitive development tasks, and introduce AI-powered diagnostics for system reliability.

At the same time, Spark’s decision to retain ownership of key assets helps maintain resilience and responsiveness in critical service areas, a key factor in the competitive telecommunications and digital services sector. The company’s internal teams will focus more on innovation, customer insight, and market differentiation, rather than on back-end system delivery.

Why is Infosys scaling local operations in New Zealand?

As part of the broader agreement, Infosys is committing to expand its footprint in New Zealand by hiring local staff and reinforcing its regional engineering capabilities. This move serves multiple strategic goals. It addresses local regulatory expectations around data handling and operational transparency, ensures that culturally specific service experiences are preserved, and reduces latency in on-the-ground decision-making.

Infosys’s hybrid delivery model, blending global efficiency with local accountability, has become a hallmark of its operations in regulated sectors such as telecommunications, financial services, and healthcare. By enhancing its presence in New Zealand, Infosys not only ensures business continuity but also positions itself for future regional growth opportunities, particularly in the South Pacific and Oceania markets.

What are the stock market and investor implications of this partnership?

The announcement has wider financial implications for both publicly traded companies—Infosys and Spark New Zealand.

Infosys (INFY), listed on the NSE, BSE, and NYSE, closed at ₹1,413.10 on April 16, 2025, down 0.90% on the day. Over the past month, its stock has declined from a March closing price of ₹1,570.65, amid broader tech market volatility. Despite the short-term pressure, Infosys retains strong fundamentals, including a market cap of ₹586,856.13 crore and a dividend yield of 2.88%. With a debt-to-equity ratio of just 0.09, the company is financially sound. Among 40 analysts, 26 currently rate the stock a ‘Buy’ or ‘Strong Buy,’ indicating strong sentiment based on its focus on generative AI, cloud acceleration, and robust client relationships like Spark. For long-term investors, Infosys remains a favourable pick for portfolio stability and digital growth exposure.

Spark New Zealand (SPK), listed on the New Zealand Exchange (NZX), ended trading at NZD 2.06 on April 16, rising 0.73% on the day. The stock has gained some traction since hitting a 52-week low of NZD 1.95 in March, but remains well below its high of NZD 4.78. The company’s market capitalisation sits at around NZD 3.86 billion, reflecting a year-to-date decline of over 26%. However, with a dividend yield of 6.80%, Spark offers income-focused investors a stable payout amid ongoing transformation efforts. Analysts currently favour a ‘Hold’ rating, pending further clarity on the outcomes of its digital initiatives, including the Infosys collaboration. For those seeking exposure to infrastructure-backed digital evolution in the Oceania market, Spark may warrant a watchlist position.

How does this deal reflect industry trends in telco-tech partnerships?

The Spark-Infosys agreement reflects a broader trend of telecom operators partnering with global IT services firms to accelerate cloud migration, introduce AI-powered features, and reduce time-to-market for new digital products. This shift is driven by increased demand for personalised, always-on services, as well as the need to diversify beyond traditional voice and data offerings.

Telecom companies worldwide are under pressure to evolve from infrastructure providers to digital experience enablers. In this environment, partnerships that blend internal strategic control with outsourced execution have become a common model. Companies such as AT&T, Vodafone, and Telstra have entered similar arrangements with major tech firms, balancing innovation with operational efficiency.

Infosys’s emphasis on modularity, AI enablement, and cloud-native delivery frameworks resonates strongly with telcos looking to transform legacy platforms into flexible, scalable, and future-ready digital ecosystems. Meanwhile, for Infosys, such deals represent continued momentum in its global telecommunications vertical, contributing to both revenue diversification and increased visibility in strategic markets like New Zealand.

What are the broader implications for Spark’s digital roadmap?

For Spark, this collaboration supports an ongoing shift toward becoming a digitally native service provider, capable of using AI and data to create highly tailored user experiences. Over the past several years, Spark has invested in modernising its digital infrastructure, moving away from traditional telco models toward data-rich services across mobile, broadband, entertainment, and enterprise technology segments.

The latest collaboration with Infosys is expected to amplify Spark’s capability to innovate quickly, introduce AI into customer engagement workflows, and create more seamless omnichannel experiences. It also reflects a growing internal confidence in separating strategic IT leadership from day-to-day technical delivery, a move that has become standard practice among digital-first enterprises.

In retaining control over its innovation agenda and IT asset ownership, Spark is aligning itself with a global best practice approach that balances digital transformation with governance. The partnership with Infosys provides execution power and AI tooling without forcing Spark to relinquish key architectural or product control.