Infosys is teaming up with German automaker Daimler to open an operation focused on innovation and IT infrastructure transformation in the German automotive sector.
Daimler’s IT staff will be transferred to Infosys in Stuttgart as part of the deal, another example of an Indian IT service provider strengthening its European presence under contract.
The Digital Technology and Innovation Center, as it is called, will support Daimler and the wider automotive industry in Germany, promoting a multi-cloud and carbon neutral approach to IT infrastructure transformation. Automotive and IT experts from across Germany will be invited to share their knowledge, skills and innovations, providing automakers with the tools to meet the demands of electric vehicle integration.
“[It] will provide a wide range of benefits to both Infosys and the German automotive industry, ”said Salil Parekh, CEO of Infosys. “By bringing together tremendous skills and expertise from across Germany, this center will support Daimler on its journey of multi-cloud and AI-based hybrid digital transformation towards scalability. It will also provide a cloud architecture model that other German manufacturers can emulate as they go through a period of resilient IT transformation. “
Jan Brecht, CIO at Daimler and Mercedes-Benz, said: “As software becomes modular and IT infrastructure continues to evolve, Daimler will take three simultaneous steps to transform its IT landscape: consolidation, scale and modernization.
He added that by creating the Infosys Automotive and Mobility center in Germany, Infosys is committed to growing with Daimler in the automotive industry and providing career opportunities to its employees. “The center will also set new standards for cloud and infrastructure services in the automotive industry,” said Brecht.
Infosys will provide training and innovation laboratories, as well as an environment to develop advanced technologies such as artificial intelligence, automation and electrification. It will also champion sustainability with a data center that runs on 100% renewable energy and does not consume water.
Peter Schumacher, CEO of management consultancy The Value Leadership Group, said the Digital Technology and Innovation Center is part of the Infosys agreement signed with Daimler at the end of last year.
He said it was one of the biggest deals in Infosys history, and he expects more German companies to sign deals with IT service providers based in. India.
“Most German executives still don’t realize how strong India’s IT service companies are and the enormous entrepreneurial, organizational, engineering, digital, product development and research capabilities they offer,” said Schumacher, adding that this lack of understanding has been lucky for the German IT services industry, which he says has been “increasingly out of touch with reality over the past two decades.”
“German IT service companies that once aspired to be world leaders have fallen behind,” said Schumacher.
He also believes that large German companies like Daimler, themselves facing threats from companies like Tesla, are redoubling their efforts to improve their competitiveness.
“It is becoming clear to business executives and innovation leaders at Daimler and other German companies that partnering with an Indian global services company is a long-term opportunity that will allow them to create a new set of ‘global benefits. “