Infosys strives to renew Daimler's $3 billion contract, AI technology helps new growth

Recently, Indian IT service giant Infosys is actively negotiating with German automaker Daimler, striving to renew a $3 billion contract in advance, hoping to extend the cooperation to 2028 based on the existing agreement. after. The highlight of the renewal is that Infosys plans to incorporate artificial intelligence (AI) technology into the new agreement to add a new revenue stream to its existing service portfolio.

The eight-year contract, called the Double Speedup Program, was signed in December 2020 and covers six major service areas, including network management, security services, SAP infrastructure, data centers, workplaces and operational support. According to the contract, Infosys can earn an average of $400 million in revenue each year, of which $160 million is from data centers, while software and hardware services are $240 million in revenue.

According to relevant information, an AI element will be added to the new Request for Proposal (RFP), a change is expected to further boost Infosys' annual revenue from Daimler. The current discussion between the two sides is still in its initial stages and it is expected that there is a high possibility of reaching a potential agreement next year.

After Daimler split into Mercedes-Benz Group and Daimler Trucks in 2021, it is still one of Infosys' main customers, ranking among its three major customers, and the other two are Apple (Apple) and JPMorgan Chase & Co. Previously, Infosys signed a 10-year contract with Vanguard for $1.89 billion, one of the largest deals reached under current CEO Salil Parekh.

At present, super-large-scale contracts in the Indian IT industry are gradually scarce, especially large agreements with over US$1 billion. Apart from the $2.5 billion contract signed by TCS and Aviva last year, there are not many similar large-scale cooperation agreements on the market. Therefore, Infosys hopes to integrate AI technology into services through its cooperation with Daimler, to open up new market opportunities and increase revenue.