Infosys has emerged as the front-runner for a multi-year $1.3 billion deal from German automotive major Daimler focused on infrastructure management services, networks and data centres, sources told TOI. The IT outsourcing deal involves 500-600 Daimler employees transferring to the IT firm. Some sources told TOI that the number could be more than that.
When TOI contacted Daimler, the spokesperson for digitalisation & IT for Mercedes-Benz Cars & Vans, Dora Constantinita, said, “In the area of IT, we will continue to focus our internal IT competencies on software development, thereby strengthening Daimler in the digital competition. At the same time, we will be able to benefit from the scaling effects and innovative performance of global IT companies in the areas of data centres, networks, and workplace IT.”
Constantinita said, “For this reason, we are currently investigating whether we can partially transfer these areas to an external partner. After evaluating different offers of potential candidates, we now down-selected those possible partners and proceed for exclusive negotiations with one partner for the areas data centres, networks and workplace IT. A deal has not yet been made.” Infosys said it has no comments to offer.
A Bloomberg report last year said a Daimler restructuring plan called for cutting its workforce by more than 10,000 to slash 1.4 billion euros ($1.6 billion) off personnel spending by 2022.
Infosys already serves as a strategic partner for Daimler’s European data centres. The service is delivered out of Daimler’s enterprise operations office in Bengaluru.
Infosys has been winning some big deals in recent times. It won its largest deal ever, a $1.5-billion one from Vanguard, in August. It involves the transfer of around 1,300 Vanguard roles to Infosys.
Sourced from The Economic Times - written by Shilpa Phadnis