Coforge signs $1.56bn deal with Sabre to boost AI-led innovation

Sabre Corporation, a US-headquartered travel technology company, has entered into a multi-year agreement with Indian IT services provider Coforge to enhance its product development and innovation. The agreement, which extends their partnership to 13 years, is valued at approximately $1.56 billion.

The collaboration aims to accelerate Sabre’s product delivery and introduce Artificial Intelligence (AI)-enabled solutions, reinforcing the company’s commitment to advancing travel technology, the company said.

Sudhir Singh, CEO and Executive Director of Coforge, described the agreement as "a testament to the trust and capabilities both companies bring to the collaboration". He emphasised Coforge’s commitment to engineering excellence and innovation in the travel industry.

The deal is also significant, especially as major IT service providers notice shrinking deal sizes and shorter time frames from clients.

Sabre’s CEO and President, Kurt Ekert, noted that the partnership with Coforge would play a key role in Sabre’s goal of becoming the most valued global technology platform in travel.
With a shared focus on innovation, Sabre and Coforge plan to drive technological advancements that will modernise the travel industry. 

In January, Coforge reported strong financial results for the third quarter of the 2025 fiscal year, which ended on 31 December 2024. The company recorded revenues of $397.1 million (₹3,318.2 crore), reflecting an 8.4% increase from the previous quarter.

Meanwhile, the travel technology sector is rapidly expanding, fueled by AI integration. Analysts anticipate growth from personalised recommendations and enhanced customer service through AI tools like chatbots and data analytics. A January report from Intellify predicts the market will increase from $2.95 billion to $13.38 billion, with the AI in travel market expected to grow at a CAGR of 35% from 2022 to 2027, rising from $81.3 billion to $423.7 billion.

In related news, Coforge has approved the acquisition of two IT service providers, Rythmos Inc. and TMLabs Pty Ltd., to boost its market competitiveness. Rythmos will involve an initial cash payment of $30 million, with additional milestone-based payments, expected to close by March 31, 2025. Meanwhile, Coforge has acquired a full stake in TMLabs through its Australian subsidiary, with an initial payment of AUD 20 million and further payments linked to revenue and EBITDA for FY26 and FY27, also expected to be finalised by March 31, 2025.