Infosys announces long-term strategic partnership with Daimler AG

Daimler AG and Infosys on Tuesday announced a long-term strategic partnership for a technology-driven IT infrastructure transformation. The deal size is learned to be worth nearly $2 billion.

A statement from the company said after the receipt of all regulatory approvals, Daimler AG will transform its IT operating model and infrastructure landscape across workplace services, service desk, data centre, networks and SAP Basis together with Infosys.

The partnership will enable the company to deepen its focus on software engineering and establish a fully scalable on-demand digital IT infrastructure and anytime-anywhere workplace. The collaboration will empower Daimler to strengthen its IT capabilities, and Infosys, its automotive expertise.

As software becomes modular, digital infrastructure continues to play an important role in defragmentation. Daimler will work towards a model that ensures a robust IT infrastructure across its plants and regions and supports consolidation of its data centres, scaling its IT operations, and bringing innovations to the fore.

As a part of this partnership, automotive IT infrastructure experts based out of Germany, wider Europe, the U.S. and the APAC region will transition from Daimler AG to Infosys. Infosys is well placed to realize this transition as an expert having integrated more than 16,000 employees through other partnerships in recent years with a high acceptance, retention and satisfaction rate. The transfer will also enable Infosys to bolster and grow its automotive business while offering Daimler employees strong prospects for long-term career growth and development, the statement said.

“We are excited about this partnership and the opportunity to support Daimler AG’s automotive vision. As we embark on this journey, we will bring together capabilities, ecosystems and a hybrid cloud infrastructure that will shape new experiences for Daimler AG and the industry at large. Infosys has deep expertise in helping our clients across the globe navigate their digital journeys, and as part of this strategic partnership, we look forward to setting a new standard for the automotive industry,” said Salil Parekh, Chief Executive Officer, Infosys .

Talking about the partnership, Jan Brecht, Chief Information Officer, Daimler and Mercedes-Benz , said, “Software becomes modular and IT infrastructure becomes big. Daimler will take three steps at once to transform its IT infrastructure: consolidation, scaling and modernization. We need to think infrastructure beyond the size of our company. With Infosys we found a partner to scale, to innovate and to speed up. Moreover, this is a strategic partnership for Daimler’s IT capabilities and Infosys’ automotive expertise. Infosys wants to grow with us in the automotive industry, which gives career opportunities for our employees. With this partnership, Daimler also strengthens its overall technology investment and partnership strategy.”