Infosys Plans to Extend $3 bn Daimler Deal and Add AI in Bid for More Revenue
The eight-year contract, signed in December 2020 and known as the ‘Twice as Fast Programme,’ covers six key areas: network, security, SAP basis, data center, workplace, and operations.
Indian IT giant Infosys is in talks with German automaker Daimler for an early renewal of its $3 billion contract, aiming to extend the agreement past its 2028 expiration, according to a Mint report.
The IT services leader also plans to integrate AI into the deal, adding a seventh revenue stream to its existing portfolio.
The eight-year contract, signed in December 2020 and known as the ‘Twice as Fast Programme,’ covers six key areas: network, security, SAP basis, data center, workplace, and operations.
The agreement guarantees Infosys an average annual revenue of $400 million, with $160 million derived from data center services and the remaining $240 million from software and hardware services.
According to an executive familiar with the discussions, "There will be an AI component added to the new RFP (request for proposal). As a result, Infosys's overall revenue from Daimler is expected to rise." Although negotiations are in the early stages, a final agreement is expected to materialize next year.
Daimler, which split into Mercedes-Benz Group and Daimler Trucks in 2021, remains a major client for Infosys. The company is still ranked among Infosys’s top three clients, alongside Apple and JPMorgan Chase & Co.
Last month, Infosys announced the expansion of its partnership with Siemens AG, a global technology leader, to accelerate digital learning initiatives powered by generative artificial intelligence (AI).
The enhanced collaboration will provide more than 250,000 Siemens employees worldwide with tailored upskilling opportunities, fostering personalized learning and career growth.
Through this partnership, Siemens' My Learning World platform—a digital learning tool accessible anytime, anywhere—will integrate Infosys Topaz, an AI-driven solution utilizing generative AI technologies, along with Infosys Wingspan, an AI-powered platform offering a next-generation enterprise learning experience.
"Our collaboration with Siemens to help integrate Infosys Wingspan's generative AI capabilities, powered by Infosys Topaz, into My Learning World is a testament to Siemens’ commitment to providing their people with the best possible learning and growth opportunities. Our platform's unique features, tailored to Siemens' specific context, will empower their people to learn and upskill more effectively, develop at their own pace, and contribute more meaningfully to the organization's success," Jasmeet Singh, Executive Vice President and Global Head of Manufacturing, Infosys said.
