Infosys wins $3.2 billion contract from Daimler – Times of India
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BENGALURU: It’s a landmark, multi-billion-dollar deal win for Infosys. The Bengaluru-based IT firm has won the largest deal ever in its history from German automotive major Daimler that sources said is estimated at $3.2 billion, spread over eight years.
The deal involves a massive infrastructure overhaul and migration to a hybrid cloud environment. It will bolster Infosys’s presence in the automotive space and will allow Daimler to focus on its core engineering and digital capabilities.
The latest 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 last month and had said that it involves 600 people transferring to Infosys from Daimler. 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 landscape 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 and the Apac region will transition from Daimler to Infosys. Infosys has seen many people takeover deals in the recent past and has integrated more than 16,000 employees through other partnerships in recent years.
“As we embark on this journey, we will bring together capabilities, ecosystems and a hybrid cloud infrastructure that will shape new experiences for Daimler 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 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. The deal contours highlight a smart hybrid cloud, leveraging Infosys Cobalt and other cloud providers, accelerating the multi-cloud journey with a focus on open source adoption and AI powered anytime-anywhere workplace solution that empowers the end-users. 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.
“We are on the cusp of a positive turnaround for IT and business services coming off the back of the pandemic disruption, and these mega deals are a big part of this. Most service providers are turning the corner and are starting to report better numbers,” he said.
The deal involves a massive infrastructure overhaul and migration to a hybrid cloud environment. It will bolster Infosys’s presence in the automotive space and will allow Daimler to focus on its core engineering and digital capabilities.
The latest 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 last month and had said that it involves 600 people transferring to Infosys from Daimler. 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 landscape 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 and the Apac region will transition from Daimler to Infosys. Infosys has seen many people takeover deals in the recent past and has integrated more than 16,000 employees through other partnerships in recent years.
“As we embark on this journey, we will bring together capabilities, ecosystems and a hybrid cloud infrastructure that will shape new experiences for Daimler 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 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. The deal contours highlight a smart hybrid cloud, leveraging Infosys Cobalt and other cloud providers, accelerating the multi-cloud journey with a focus on open source adoption and AI powered anytime-anywhere workplace solution that empowers the end-users. 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.
“We are on the cusp of a positive turnaround for IT and business services coming off the back of the pandemic disruption, and these mega deals are a big part of this. Most service providers are turning the corner and are starting to report better numbers,” he said.
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