Daimler in a long-term strategic partnership deal with Infosys

German automotive major Daimler AG has entered a long-term strategic partnership deal for a technology-driven IT infrastructure transformation with Infosys Ltd. The collaboration will allow Daimler to strengthen its IT capabilities and Infosys its automotive expertise.

As part of the deal, 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. As a part of this partnership, automotive IT infrastructure experts based out of Germany, Europe, US and the Asia Pacific region will transition from Daimler AG to Infosys.

Though Infosys agreed to the deal but it didn't disclose financial details of it. But it is estimated at over a billion dollars.

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.

In July, Infosys had won a multi-year digital transformation deal from Vanguard, the US investment firm. The deal pegged at about $1.5 billion is one of the largest ever for the company and an indication that digital technology spending is on the rise.

Infosys's deal momentum has been steady and strong during the third quarter ending December, typically a seasonally weak period for IT companies.

The quarter is considered seasonally weak due to the holiday season in key geographies such as the US and Europe.

The company’s digital business has grown 25.4 per cent since last year and contributed 47.3 per cent to the revenue for the second quarter ended September.