Infosys to open German operation focused on automotive sector

Infosys is partnering German automotive manufacturer Daimler to open an operation focused on innovation and IT infrastructure transformation in the German automotive sector.

IT staff at Daimler will transfer to Infosys in Stuttgart as part of the agreement, in another example of an Indian IT services supplier beefing up European presence as part of a contract.

The Digital Technology and Innovation Center, as it is known, will support Daimler and the wider automotive sector in Germany, promoting a multi-cloud and carbon-neutral approach to IT infrastructure transformation. Automotive and IT experts from across Germany will be brought in to share knowledge, skills and innovation, offering automotive manufacturers the tools to meet demands for including electric vehicles.

“[It] will provide a wide range of benefits for both Infosys and the German automotive sector,” said Salil Parekh, Infosys CEO. “By bringing together the formidable skills and expertise across Germany, this centre will support Daimler in its hybrid multi-cloud and AI-driven digital transformation journey to scalability. It will also provide a cloud architecture blueprint for other German manufacturers to emulate as they move 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 scale, Daimler will take three simultaneous steps to transform its IT landscape: consolidation, scaling and modernisation.”

He added that through establishing the Infosys Automotive and Mobility centre in Germany, Infosys is committed to growing with Daimler in the automotive industry and provide career opportunities for its employees. “The centre will also set new standards for cloud and infrastructure services in the automotive industry,” said Brecht.

Infosys will provide training and innovation labs, along with an environment to develop advanced technologies such as artificial intelligence, automation and electrification. It will also champion sustainability with a datacentre operating on 100% renewable energy and zero water consumption.

Peter Schumacher, CEO at management consultancy The Value Leadership Group, said the Digital Technology and Innovation Center is part of the deal Infosys signed with Daimler late last year.

He said it was one of the largest deals in the history of Infosys, and he expects more German businesses to sign deals with India-based IT service providers.

“Most executives in Germany still don’t realise how strong the Indian IT services firms are, and the enormous entrepreneurial, organisational, engineering, digital, product development and research capabilities they offer,” said Schumacher, adding that this lack of understanding has been fortunate for the German IT services sector, which he said has “grown increasingly out of touch with reality over the past two decades”.

“German IT Services firms that once aspired to become world leaders have become laggards,” said Schumacher.

He also believes large German businesses like Daimler, facing threats themselves from companies like Tesla, are doubling down on improving 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 firm is a long-term opportunity that will allow them to build a new set of global advantages.”