Infosys Eyes Early AI Expansion for $3 Billion Daimler Deal

Infosys is seeking an early renewal of its $3 billion contract with German automaker Daimler, aiming to extend the agreement beyond its current expiration in 2028, according to a report by Mint. The IT services giant is also looking to join AI into the deal, adding a seventh revenue stream to its existing service portfolio.

Signed in December 2020, the eight-year contract—internally called the ‘twice as fast program’—currently covers six areas: network, security, SAP basis, data centre, workplace, and operations. The project guarantees Infosys an average annual revenue of $400 million, with $160 million generated from data centres and the remaining $240 million from software and hardware services.

“We are told there will be an added AI component as part of the new RFP (request for proposal),” said one executive. “The overall revenue Infosys gets from Daimler in a year is expected to increase.” Discussions between both companies are still in the early stages, with a potential agreement expected by next year.

Daimler, which split into Mercedes-Benz Group and Daimler Trucks in 2021, continues to provide business to Infosys.

Daimler remains one of Infosys’s top three clients, alongside Apple and JPMorgan Chase & Co. The company previously signed a 10-year, $1.89 billion contract with Vanguard in 2020, marking one of its largest deals under CEO Salil Parekh.

The push for AI integration comes amid a scarcity of mega deals exceeding $1 billion in the Indian IT sector. Aside from TCS’s $2.5 billion outsourcing contract with Aviva last year, large-scale agreements have been limited.