Infosys wins record $3.2 billion contract from Daimler | Bengaluru News – Times of India
The deal involves infrastructure overhaul and migration to a hybrid cloud environment. It will bolster the firm’s presence in the automotive space and will allow Daimler to focus on its core engineering and digital capabilities.
The win is bigger than the $1.5-billion Vanguard deal that Infosys bagged in August. The Daimler-Infosys deal is so significant that Infosys chairman Nandan Nilekani took to Twitter to call it an industry-defining partnership. Infosys and Daimler declined to comment on the deal size and the timeline. TOI was the first to report the deal in November and had said it involves 600 people transferring to Infosys from Daimler.
Infosys will help Daimler scale its IT operations
Though mega deals have returned to deal street, the margins are leaner with commoditised services making up for a large part of the business. Daimler will transform its IT operating model and infrastructure across workplace services, service desk, data centre, networks and SAP Basis together with Infosys. As a part of this partnership, automotive IT infrastructure experts based out of Germany, wider Europe, the US andApac region will transition from Daimler to Infosys.
Infosys has seen many people take over deals in the recent past and has integrated more than 16,000 employees through other partnerships in recent years. “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 Infosys CEO Salil Parekh. Jan Brecht, chief information officer in 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 modernisation. We need to think infrastructure beyond the size of our company. Moreover, this is a strategic partnership for Daimler’s IT capabilities and Infosys’ automotive expertise.”
The deal involves stitching a robust IT infrastructure across Daimler’s plants and regions, consolidating data centres and scaling IT operations. Sources told TOI that Shishank Gupta, SVP and service offering head in Infosys Validation Solutions, has been identified to oversee the Daimler account. Phil Fersht, CEO of US-based HfS Research, said the mega-deal is back because of the environment where take-the-people deals can have an immediate revenue impact, and create ‘land-grab’ opportunities for services providers like Infosys, TCS and Wipro who are looking to take advantage of the pandemic economy.